At least to start, the Swiss has managed to respect consolidation support but the consolidation zone isn’texactly an extensive or solid formation. We do think the trade is discounting the prospect of a US governmentshutdown and we also think that a continued cease-fire in the Ukraine should alleviate some selling pressure onthe Swiss. However, EU officials continue to openly fret over the drag from the sanctions and that keepsfundamental players bearish toward the Swiss.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. The close belowthe 9-day moving average is a negative short-term indicator for trend. The market’s close below the 1st swingsupport number suggests a moderately negative setup for today. The next downside target is now at 105.91. The9-day RSI under 20 suggests the market is extremely oversold. The next area of resistance is around 107.13 and107.66, while 1st support hits today at 106.26 and below there at 105.91.