The Swiss charts would seem to point to more gradual downside erosion ahead as the reaction to the SNB policy debacle drips from the equation. Initial support and a possible critical pivot point this morning is seen down at 1.1366 and since the market initially failed to hold that level, we have to give the bear camp an edge.
Technical Outlook: The rally brought the market to a new contract high. The upside crossover (9 above 18) of the moving averages suggests a developing short-term uptrend. Positive momentum studies in the neutral zone will tend to reinforce higher price action. The close above the 9-day moving average is a positive short-term indicator for trend. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The near-term upside objective is at 121.25. With a reading over 70, the 9-day RSI is approaching overbought levels. The next area of resistance is around 118.92 and 121.25, while 1st support hits today at 113.97 and below there at 111.34.