Like the Euro, the Swiss is getting what appears to be a temporary technical benefit from unfolding weakness in the Dollar. With the Dollar expected to extract more hawkish expectations from its value in the next 30 hours of trade, the path of least resistance in the Swiss is up and near term targeting is seen up at 1.0464. We doubt that the recent gains are off the expectations of an end game in the Russian sanctions drag, but something significant might be set to surface soon.
Technical Outlook: Momentum studies are rising from mid-range, which could accelerate a move higher if resistance levels are penetrated. A positive signal for trend short-term was given on a close over the 9-bar moving average. The market’s close below the pivot swing number is a mildly negative setup. The near-term upside objective is at 104.22. The next area of resistance is around 103.91 and 104.22, while 1st support hits today at 103.39 and below there at 103.17.