Like the Euro, the Swiss was recently priced for perfection and it would appear as if the currency isheaded back to the bottom of the uptrend channel down at 1.1280. It is possible that part of the slide in the Swissthis week was the result of a tempering of dialogue from Russian leaders toward the Ukraine and it is alsopossible that positive US scheduled data has revived long interest in the Dollar, partially at the expense of theSwiss.
Technical Outlook: A crossover down in the daily stochastics is a bearish signal. Declining momentumstudies in the neutral zone will tend to reinforce lower price action. The close below the 9-day moving average is anegative short-term indicator for trend. A negative signal was given by the outside day down. There could besome early pressure today given the market’s negative setup with the close below the 2nd swing support. Thenext downside target is now at 112.62. The next area of resistance is around 114.29 and 115.27, while 1stsupport hits today at 112.97 and below there at 112.62.