Relative calm in global markets at the end of 2013 has helped to drain the Swiss Franc’s safe-havensupport, and is helping to fuel long liquidation early in today’s trading. Carryover support from their Euro zoneneighbors may help to revive this uptrend in 2014, but the SNB will have little tolerance for a high valuation for theSwiss Franc going forward. With that in mind, it may be difficult for the Swiss Franc to climb further into new highground without significant improvement on the Swiss inflation front. The March Swiss could slide down towardsthe 112.04 level later today, and remains vulnerable to a sharp liquidation selloff to finish out the year.
Technical Outlook: The moving average crossover down (9 below 18) indicates a possible developingshort-term downtrend. Stochastics trending lower at midrange will tend to reinforce a move lower especially ifsupport levels are taken out. The market’s short-term trend is positive on the close above the 9-day movingaverage. The market has a slightly positive tilt with the close over the swing pivot. The next downside target is111.67. The next area of resistance is around 113.16 and 113.51, while 1st support hits today at 112.24 andbelow there at 111.67.