Spot has worked back into the 1.2190's and bulls and various short-term funds now look for a re-test of the 1.2200 area on further Dollar strength. Any break into the 1.22"s will see 1.2240 come into view. However, the recent news that the KoF has upgraded their growth projections should help the Franc offset further weakness. The institute has revised their 2007 forecasts from 2.1% to 2.4% with their outlook for 2008 most dramatically altered, 2.5% from the previous 1.5%.
1.6284 has printed amid the EUR/CHF move higher in Europe but offers into the 1.6291 failed high from February 22nd are now eyed to stall further strength. The KoF news should help aid some degree of stalling into the highs but further stabs higher cannot be discounted. On the options front, gamma related sellers are reported to trail back to the 1.6300 mark with more barriers seen into the 1.6500 region.
On the technical front, any full retracement back to the 1.6291 mark will return the onus to the topside. Should the price manage to break into the 1.63's then the key 50% Fibo above at 1.6318 will come into view. This represents the move down from the synthetic high, from 1992 & 1993, at 1.8234 to the 2001 low at 1.4403.
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