The Swiss saw a strong KOF indicator today and even that news failed to sustain higher action in theMarch Swiss relative to the prior session’s closing level. Even though the KOF reading extended the pattern ofgains from April of last year to the end of 2013, the fundamental argument for a higher Swiss is seemingly lost inthe shuffle. Therefore it might be difficult to see the March Swiss avoid a slide down to consolidation supportdown at 1.10. Initial support is seen at 1.1081 and resistance today is fairly strong up at 1.1130.
Technical Outlook: A bearish signal was triggered on a crossover down in the daily stochastics.Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are takenout. The market back below the 18-day moving average suggests the intermediate-term trend could be turningdown. The gap lower on the day session chart is bearish and puts the market on the defensive. There could besome early pressure today given the market’s negative setup with the close below the 2nd swing support. Thenext downside target is 110.49. The next area of resistance is around 111.71 and 112.04, while 1st support hitstoday at 110.94 and below there at 110.49.