The Swiss was able to climb back above the key 1.1000 level late Wednesday and hold there this morning, but is giving little indication that this downtrend will ease up anytime some. A “triple-threat” of a robustDollar, lukewarm vibes from the Euro zone and a negative turn in recent Swiss data has a retest of the earlyNovember low at 1.0875 on the near-term horizon. Weak US data could trigger a short-covering rally backtowards the 1.1028 area but along with the Euro, any chance for an extensive recovery will depend on signs ofprogress from the Ukraine and/or disappointment from tomorrow’s Non-Farm Payroll number.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. A negative signal for trend short-term was given on a close under the 9-barmoving average. The swing indicator gave a moderately negative reading with the close below the 1st supportnumber. The next downside objective is 109.55. The 9-day RSI under 20 suggests the market is extremelyoversold. The next area of resistance is around 110.33 and 110.60, while 1st support hits today at 109.81 andbelow there at 109.55.