A big range up attempt overnight was rejected and appears to have failed. We suspect that some of thereversal is off expectations of decent US scheduled data later this morning but we also get the sense that theSwiss is in the midst of a developing pattern of higher lows and higher highs. Therefore up trend channel supporttoday is seen at 1.0534 and that up-trend channel support line rises to 1.0552 on Wednesday.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce a movehigher if resistance levels are taken out. The close above the 9-day moving average is a positive short-termindicator for trend. The daily closing price reversal up on the daily chart is somewhat positive. It is a mildly bullishindicator that the market closed over the pivot swing number. The near-term upside objective is at 106.76. Thenext area of resistance is around 106.52 and 106.76, while 1st support hits today at 105.78 and below there at105.28.