The Swiss forged a quasi-upside breakout on the charts overnight by temporarily violating a down-trend channel resistance line up at 1.0928. A more significant resistance point is seen up at 1.0958 and we doubt thatthe Swiss will be able to rise consistently in the face of renewed Russian sanction prospects and the spilloverweakness that might be seen from the Euro zone in the event that even more sanctions are considered.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. The market’sshort-term trend is negative as the close remains below the 9-day moving average. The upside closing pricereversal on the daily chart is somewhat bullish. The market setup is supportive for early gains with the close overthe 1st swing resistance. The next downside objective is 108.69. The next area of resistance is around 109.61and 109.81, while 1st support hits today at 109.05 and below there at 108.69.