More sanctions against Russia, reports of fresh shelling in the Ukraine, and strong ongoing flows toward the Dollar, leave the Swiss in an entrenched downward track on its charts. Near term support at 1.0676 is unlikelyto hold ahead and the return to fresh new lows is possible in the event that US data later this morning showsanything positive.
Technical Outlook: Daily stochastics are showing positive momentum from oversold levels, which shouldreinforce a move higher if near term resistance is taken out. A negative signal for trend short-term was given on aclose under the 9-bar moving average. The market has a slightly positive tilt with the close over the swing pivot.The near-term upside target is at 107.56. The market is approaching oversold levels on an RSI reading under 30.The next area of resistance is around 107.31 and 107.56, while 1st support hits today at 106.79 and below thereat 106.51.