The SNB is threatening to intervene and some sources suggest that they have been intervening since the removal of the cap. However, after an initial downside extension overnight the Swiss has found some measure of support and that could leave a critical pivot point down at 1.1087. However, we think the path of least resistance in the Swiss is down and that the currency will eventually return to the 1.05 level in the weeks ahead.
Technical Outlook: Momentum studies are rising from mid-range, which could accelerate a move higher if resistance levels are penetrated. The market’s close below the 9-day moving average is an indication the shortterm trend remains negative. The market is in a bearish position with the close below the 2nd swing support number. The next upside objective is 115.58. The next area of resistance is around 112.81 and 115.58, while 1st support hits today at 109.07 and below there at 108.11.