The Swiss is managing to consolidate last week’s recovery from 5-month lows but like the Euro, isshowing little inclination for making any extensive recovery. With the Swiss/Euro spread closing on the SNB’s1.20 peg, it may be difficult to sustain an upside move unless conditions in the Euro zone and/or Ukraine seesome marked improvement. Look for downside targeting around the 1.0314 area over the next few sessions.
Technical Outlook: The daily stochastics gave a bullish indicator with a crossover up. Daily momentumstudies are on the rise from low levels and should accelerate a move higher on a push through the 1st swingresistance. The market’s short-term trend is negative as the close remains below the 9-day moving average. Theupside closing price reversal on the daily chart is somewhat bullish. A positive setup occurred with the close overthe 1st swing resistance. The near-term upside target is at 104.43. The next area of resistance is around 104.10and 104.43, while 1st support hits today at 103.28 and below there at 102.79.