With the Ukraine/Russian situation calming from the hard boil at the end of last week, ECB officialsdownplaying the prospect and impact of QE and the cease-fire in Gaza the pressure on the Swiss has abated. Itis also possible that the declines of the last two weeks in the Swiss have left the currency short term oversold andin need of a corrective bounce. Corrective bounce targeting in the September Swiss is seen up at 1.0940.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. Themarket’s short-term trend is negative as the close remains below the 9-day moving average. The outside daydown and close below the previous day’s low is a negative signal. The swing indicator gave a moderatelynegative reading with the close below the 1st support number. The next downside objective is now at 108.60.Some caution in pressing the downside is warranted with the RSI under 30. The next area of resistance is around109.27 and 109.61, while 1st support hits today at 108.77 and below there at 108.60.