Like the Euro, the Swiss is out of favor from a macro-economic differential and interest rate differentialstanding and that in turn should at least allow for a slide down to consolidation low support of 1.1104. PositiveChinese data, hawkish leanings from the US Fed watch and ideas that the ECB wants to see a decline in theEuro leaves the path of least resistance pointing downward.
Technical Outlook: The close below the 40-day moving average is an indication the longer-term trend hasturned down. The downside crossover (9 below 18) of the moving averages suggests a developing short-termdowntrend. Momentum studies trending lower at mid-range could accelerate a price break if support levels arebroken. The intermediate trend has turned down with the cross over back below the 18-day moving average.There could be some early pressure today given the market’s negative setup with the close below the 2nd swingsupport. The next downside target is 111.18. The next area of resistance is around 112.02 and 112.47, while 1stsupport hits today at 111.38 and below there at 111.18.