With its safe-haven appeal eroded by the Fed’s tapering decision, the Swiss Franc continues to probe thedownside as it has fallen nearly 1.5 cents from yesterday’s highs this morning. A sharp drop in the Swiss Tradesurplus has put further pressure on the Swiss Franc, which has taken little notice of some positive growthforecasts from the Swiss government. Given its high valuation versus the Dollar and the Euro earlier this week,there looks to be more downside left to go before the Swiss Franc finds a near-term floor. The March Swiss mayfall down towards the 111.54 area later in the session, and looks to be heading down towards much lower pricelevels during the near future.
Technical Outlook: A crossover down in the daily stochastics is a bearish signal. Stochastics turningbearish at overbought levels will tend to support lower prices if support levels are broken. A negative signal fortrend short-term was given on a close under the 9-bar moving average. The defensive setup, with the close underthe 2nd swing support, could cause some early weakness. The next downside target is 110.83. The next area ofresistance is around 112.84 and 113.82, while 1st support hits today at 111.34 and below there at 110.83.