Having come through the Swiss National Bank meeting window without facing too many headwinds, theSwiss Franc has held its ground and remains fairly well supported this morning. The SNB made few surpriseswith their post-meeting comments and felt that the “high value” of the Swiss Franc will continue, but theirdownward guidance on 4th quarter growth and 2014 & 2015 inflation forecasts may be a sign their tolerance for astrong currency is starting to wear pretty thin. The March Swiss may find support around the 112.66 level thismorning, and may have a difficult time making any large upside extension from these current price levels withoutfinding a fresh source of safe-haven support.
Technical Outlook: The market made a new contract high on the rally. Rising stochastics at overboughtlevels warrant some caution for bulls. The market’s close above the 9-day moving average suggests the shorttermtrend remains positive. With the close higher than the pivot swing number, the market is in a slightly bullishposture. The near-term upside target is at 113.42. The market is approaching overbought levels with an RSI over70. The next area of resistance is around 113.12 and 113.42, while 1st support hits today at 112.52 and belowthere at 112.23.