Major support and a potentially critical pivot point today comes in down at 1.0783 and then again down at 1.0758. We think declining open interest and volume patterns highlights a trade leaving the Swiss because of the fear of excessive volatility and therefore we think the path of least resistance is down and an eventual return to 1.05 is in the cards.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. The close below the 9-day moving average is a negative short-term indicator for trend. The market’s close below the 1st swing support number suggests a moderately negative setup for today. The next downside objective is 107.41. The next area of resistance is around 108.47 and 108.98, while 1st support hits today at 107.69 and below there at 107.41.