Like other currencies, the Swiss is short term oversold and it is also hopeful that the overhang off the Russian/Ukraine situation is set to normalize. Deeply oversold short term technical readings would seem to justifysome recovery action. A normal retracement off the August/September slide could allow for a recovery back to1.0821 without reversing the down trend pattern.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may be drying upsoon. The market’s short-term trend is negative as the close remains below the 9-day moving average. Theupside closing price reversal on the daily chart is somewhat bullish. It is a mildly bullish indicator that the marketclosed over the pivot swing number. The next downside target is now at 106.40. The 9-day RSI under 30indicates the market is approaching oversold levels. The next area of resistance is around 107.62 and 107.85,while 1st support hits today at 106.90 and below there at 106.40.