The Swiss remains under the downdraft of the ECB rate cut and it also appears that the Swiss remains under pressure because of fears that the Ukraine cease-fire might not take place ahead of this weekend. Inretrospect, it almost appears as if the ECB’s aggressive action has cleared the way for the Swiss to fall to evenlower levels, as the world has no respect for recovery capacity in the Euro zone and surrounding areas. The nextsignificant support zone in the Swiss might not be seen until the 1.06 level.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The market’s short-term trend is negative as the close remains below the 9-day moving average. The market is in a bearish position with the close below the 2nd swing support number. Thenext downside target is now at 105.90. With a reading under 20, the 9-day RSI indicates the market is extremelyoversold. The next area of resistance is around 108.16 and 109.47, while 1st support hits today at 106.38 andbelow there at 105.90.