Yesterday’s hook reversal in the Swiss did not produce any upside follow-through as the threat of fresh SNB intervention continues to hang over the market. A private survey of Swiss consumption levels showed modest improvement this morning, but a much weaker currency valuation may be needed in order for the Swiss economy to see sustained improvement. Near-term support will be around the 1.1100 level this morning, but a move down towards the 1.0500 level could occur during the next few weeks.
Technical Outlook: A bearish signal was triggered on a crossover down in the daily stochastics. Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. It is a slightly negative indicator that the close was under the swing pivot. The next downside objective is now at 108.09. The next area of resistance is around 112.35 and 113.62, while 1st support hits today at 109.59 and below there at 108.09.