Not surprisingly the Swiss is falling in sync with the Euro in the wake of softer than expected German ZEW results. Another issue pressuring the Swiss is the presence of a Russian truck convoy destined for the Ukraine which in turn rekindles fears of even more sanction inspired slowing for European economies. Initial support is seen at the consolidation lows of 1.0974 but we don’t hold much hope that the Swiss will avoid a newlow for the move and the lowest trade since January.
Technical Outlook: Momentum studies are rising from mid-range, which could accelerate a move higher ifresistance levels are penetrated. The market’s close above the 9-day moving average suggests the short-termtrend remains positive. The market’s close below the pivot swing number is a mildly negative setup. The nextupside objective is 110.51. The next area of resistance is around 110.40 and 110.51, while 1st support hits todayat 110.26 and below there at 110.22.