Like the Euro, the Swiss has seen a distinct technical and fundamental reversal. Clearly the early Marchgains were overstated in the Swiss, but to extend the downside in the Swiss straight away, probably requires animprovement in US economic sentiment through the US data window this morning. The SNB suggested that theywill continue to defend against a Swiss/Euro rate of 1.2 in the event that Safe haven interests lifts the Swiss againand while that stance failed to limit the Swiss in the first half of March, it probably serves to add to the downwardtilt in place this week. Logical downside targeting in the June Swiss is seen at 1.1268.
Technical Outlook: The daily stochastics have crossed over down which is a bearish indication. Dailystochastics turning lower from overbought levels is bearish and will tend to reinforce a downside break especiallyif near term support is penetrated. The close below the 18-day moving average is an indication the intermediatetermtrend has turned down. There could be some early pressure today given the market’s negative setup with theclose below the 2nd swing support. The next downside objective is now at 112.49. The next area of resistance isaround 114.28 and 115.12, while 1st support hits today at 112.96 and below there at 112.49.