While the currency trade doesn’t expect to see noted changes in either BOE or ECB policy today, seeingthe ECB promise to act further if necessary, might keep the Euro off balance and that action in turn might cushionthe Swiss against further downside action. In the near term, we see fairly solid support at 1.0987 but we have tothink that rallies in the Swiss are now an opportunity to get short and that the March Swiss might be on a track toeventually slide back to the November lows down around 1.0829.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. Anegative signal for trend short-term was given on a close under the 9-bar moving average. The market’s closebelow the pivot swing number is a mildly negative setup. The next downside objective is 109.24. Some caution inpressing the downside is warranted with the RSI under 30. The next area of resistance is around 110.10 and110.47, while 1st support hits today at 109.49 and below there at 109.24.