A distinct downside extension on the charts leaves the Swiss in a well defined down draft. A decline tothe lowest level since mid November makes the SNB very happy and therefore there might not be much tocushion the March Swiss from a quick slide all the way down to 1.0895. Aggressive traders might look to sell theMarch Swiss on minor recovery bounces back up to 1.0960. Favorable earnings from Swiss companies overnightare another issue that might facilitate the slide in the Swiss, as many traders think the Swiss is set to head back tomore normal historical levels.
Technical Outlook: A crossover down in the daily stochastics is a bearish signal. Momentum studies arestill bearish but are now at oversold levels and will tend to support reversal action if it occurs. The market’s shorttermtrend is negative as the close remains below the 9-day moving average. The market setup is somewhatnegative with the close under the 1st swing support. The next downside objective is now at 109.05. The next areaof resistance is around 110.31 and 110.94, while 1st support hits today at 109.37 and below there at 109.05.