Like the Euro, the path of least resistance is pointing downward as the drag from the Ukraine threatremains in place and US data continues to provide the Dollar with a bid relative to the Swiss and Euro. Resistance moves down to 1.1351 and support might not come into play until the 1.1311 level. The SNB wouldlike to talk the Swiss down to at least the 1.12 level but the focus of the currency trade is likely to remain on USdata flows until Chinese PMI data later this week.
Technical Outlook: The close under the 40-day moving average indicates the longer-term trend could beturning down. A crossover down in the daily stochastics is a bearish signal. Momentum studies trending lower atmid-range could accelerate a price break if support levels are broken. The market’s close below the 9-day movingaverage is an indication the short-term trend remains negative. The daily closing price reversal down puts themarket on the defensive. The market’s close below the pivot swing number is a mildly negative setup. The nextdownside target is 112.67. The next area of resistance is around 113.64 and 114.18, while 1st support hits todayat 112.88 and below there at 112.67.