As in the Euro, the Swiss is paying the price of current Russian sanctions and it is also paying theanticipatory cost of more sanctions against Russia. It is also likely that fresh technical damage on the charts givesthe bear camp an added edge and there might be little in the way of solid support seen until the 1.09 level is retested.As in the Euro, traders should look to sell minor recovery efforts as the trend looks to remain down ahead.
Technical Outlook: Rising from oversold levels, daily momentum studies would support higher prices,especially on a close above resistance. A negative signal for trend short-term was given on a close under the 9-bar moving average. There could be some early pressure today given the market’s negative setup with the closebelow the 2nd swing support. The next upside target is 110.60. Some caution in pressing the downside iswarranted with the RSI under 30. The next area of resistance is around 110.29 and 110.60, while 1st support hitstoday at 109.73 and below there at 109.47.