The Swiss is finding substantial carryover pressure out of the Euro zone this morning as its shortcovering rally looks to have run out of steam after the holiday break. This Sunday’s Swiss National Bank referendum looks to be heading towards defeat, which may fuel added long liquidation heading into the weekend. Near-term support will be found at $1.0336, but prices are unlikely to reach new low ground until Sunday’s results are digested by the market.
Technical Outlook: The daily stochastics have crossed over up which is a bullish indication. Momentum studies are rising from mid-range, which could accelerate a move higher if resistance levels are penetrated. The market now above the 18-day moving average suggests the intermediate-term trend has turned up. Market positioning is positive with the close over the 1st swing resistance. The next upside target is 104.72. The next area of resistance is around 104.43 and 104.72, while 1st support hits today at 103.67 and below there at 103.19.