Like the Euro, the Swiss appears to have broken down on the charts in the wake of a series of hints offurther easing from the ECB. It is also possible that some of the liquidation in the Swiss is the result of softGerman expectation readings and the lingering concern of negative influences from the Ukraine situation. In thenear term, the path of least resistance is headed downward and solid support might not be seen until the 1.1300level. Remain bearish toward the Swiss as long as the June contract remains below the 1.1375 level.
Technical Outlook: A positive indicator was given with the upside crossover of the 9 and 18 bar movingaverage. Daily stochastics have risen into overbought territory which will tend to support reversal action if itoccurs. The market’s close above the 9-day moving average suggests the short-term trend remains positive. Theclose below the 2nd swing support number puts the market on the defensive. The next upside target is 114.33.The next area of resistance is around 113.99 and 114.33, while 1st support hits today at 113.47 and below thereat 113.28.