It goes without saying that the Swiss is indirectly undermined by the news of additional fresh sanctions and it is also under pressure because of the potential for Russia to retaliate. One might also suggest that theSwiss is due to remain under pressure because of doubt that the two parties (Ukraine and Russian rebels) arewilling to work toward a final resolution. Apparently the rebels want the area they control and the Ukrainiannational government probably won’t agree to give up the land. Initial support is seen at 1.0720 but we aren’tconfident that the Swiss will be able to avoid fresh new lows for the move ahead.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. The market’s closebelow the 9-day moving average is an indication the short-term trend remains negative. The daily closing pricereversal up is a positive indicator that could support higher prices. The market’s close below the pivot swingnumber is a mildly negative setup. The next downside objective is 106.83. The 9-day RSI under 30 indicates themarket is approaching oversold levels. The next area of resistance is around 107.69 and 107.98, while 1stsupport hits today at 107.11 and below there at 106.83.