One of the few market movers so far in Thursday’s session is the Franc as it loses ground to almost all currencies. The broad based sell off is due to technical factors as the lack of Swiss economic data has allowed the Franc to form a top pattern. Both the Dollar and the Euro are enjoying good technical rallies which could continue for another day or two if US and European economic data are positive.
Technical Outlook
CHF (SEP): Daily stochastics are trending lower but have declined into oversold territory. The market’s short-term trend is negative as the close remains below the 9-day moving average. The upside closing price reversal on the daily chart is somewhat bullish. It is a slightly negative indicator that the close was under the swing pivot. The next downside objective is now at 106.44. The next area of resistance is around 107.10 and 107.24, while 1st support hits today at 106.70 and below there at 106.44.