The March Swiss has remained below its 50 day moving average and it has initially extended the sharpdownward thrust on the charts. In fact, the March Swiss overnight reached the lowest level since December 4th. The Swiss was probably undermined by weekend Press reports suggesting that the SNB will continue to holdinterest rates down for most of the coming year, as it attempts to pull down the exchange rate of the Swiss,without stoking an inflation problem in domestic real estate prices. We expect the March Swiss to eventuallyreturn to the 1.10 level and we also expect the bottom of the December consolidation pattern up at 1.1118 to befairly significant resistance.
Technical Outlook: The close below the 60-day moving average is an indication the longer-term trend hasturned down. Daily stochastics declining into oversold territory suggest the selling may be drying up soon. Themarket’s short-term trend is negative as the close remains below the 9-day moving average. The close below the1st swing support could weigh on the market. The next downside target is now at 109.86. The next area ofresistance is around 110.94 and 111.54, while 1st support hits today at 110.10 and below there at 109.86.