Anxiety levels have moderated in the Swiss and prices have slumped back toward some potentially critical levels of 1.1480. Certainly the Greek election and talk of a global currency war periodically provided the Swiss with lift early this week, but we continue to think that a large portion of the January mechanical rally is unsustainable, especially given the unrelenting strength in the Dollar.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher price action. The close above the 9-day moving average is a positive short-term indicator for trend. The market’s close below the pivot swing number is a mildly negative setup. The next upside target is 118.65. The 9-day RSI over 70 indicates the market is approaching overbought levels. The next area of resistance is around 116.44 and 118.65, while 1st support hits today at 113.42 and below there at 112.60.