We thought the Swiss was priced for perfection into the March highs and therefore the correction thisweek isn’t surprising. It is also possible that proximity to Eastern Europe might be an ongoing negative for theSwiss, as the Russian’s biggest sanction threat would be to cut off energy flow to countries caught betweenRussia and the west. As in other currency markets, the Swiss is catching some modest lift from weakness in theDollar, but the Swiss might face more significant headwinds next week, if US data shows some improvement.Pushed into the market we would be a seller of rallies.
Technical Outlook: Momentum studies trending lower at mid-range should accelerate a move lower ifsupport levels are taken out. The market’s short-term trend is negative as the close remains below the 9-daymoving average. The market’s close below the pivot swing number is a mildly negative setup. The next downsidetarget is now at 112.37. The next area of resistance is around 113.69 and 114.14, while 1st support hits today at112.81 and below there at 112.37.