Swiss Franc Confusing

Commentary: Trendline resistance (drawn off of the October 2006 and January 2007 highs) has capped gains just above 1.2300. With shorter term trendline support failing to hold this week, it is likely that the USDCHF is headed lower.

Ultimately, we are looking for a test of 1.1877. Short term, resistance should be strong near 1.2258, which is the 61.8% of 1.2329-1.2145. 1.2328 must hold in order for the bearish structure to remain intact. 8 month trendline resistance should be strong near 1.2300. Strategy: Bearish at 1.2196, against 1.2328, targeting 1.1877