This morning’s Swiss economic data provided few surprises to the market as an in-line Unemploymen tnumber helped to offset a weak reading on Retail Sales. While managing to hold above Thursday’s spike low, theSwiss needs to see sustained improvement from the Euro zone as well as from domestic data in order to liftdecisively clear of its current downtrend. A negative surprise from the Non-Farm Payroll reading could trigger ashort-covering rebound, but fresh shorts are likely waiting for any retest of this week’s early highs above the1.0420 level.
Technical Outlook: The sell-off took the market to a new contract low. Daily stochastics declining intooversold territory suggest the selling may be drying up soon. A negative signal for trend short-term was given on aclose under the 9-bar moving average. There could be some early pressure today given the market’s negativesetup with the close below the 2nd swing support. The next downside target is 101.70. The market is approachingoversold levels on an RSI reading under 30. The next area of resistance is around 103.46 and 104.51, while 1stsupport hits today at 102.06 and below there at 101.70.