The Swiss has built some measure of support on its charts around the 1.0877 level and the currency isbenefiting from the hope of an end to the Ukrainian crisis. Clearly the brunt of the Swiss declines since the Marchhighs was the result of knock on slowing fears from the Russian sanctions and part of the declines was the resultof sluggish growth throughout the Euro zone and a lack of aggressive stimulus action from the ECB. Thereforeaction from the ECB this morning could provide the Swiss with a fundamental short covering theme, but it couldtake a move above a down trend channel resistance line up at 1.1002, to fully turn the downtrend around.However, a rally back above 1.0904 could be a closer reversal point in the September Swiss.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. Anegative signal for trend short-term was given on a close under the 9-bar moving average. With the close higherthan the pivot swing number, the market is in a slightly bullish posture. The next downside objective is 108.62.The next area of resistance is around 109.11 and 109.19, while 1st support hits today at 108.83 and below thereat 108.62.