Sluggish export data, global slowing fears and an entrenched up trend in the Dollar leave the Swiss poised for an eventual slide to 1.05. With Swiss exports soft, one might suggest that even more exchange ratedeclines are needed in order to resurrect a positive growth track throughout the European region.
Technical Outlook: A bearish signal was triggered on a crossover down in the daily stochastics. Dailystochastics are trending lower but have declined into oversold territory. The market’s short-term trend is negativeas the close remains below the 9-day moving average. The market is in a bearish position with the close belowthe 2nd swing support number. The next downside target is 105.46. Some caution in pressing the downside iswarranted with the RSI under 30. The next area of resistance is around 106.97 and 107.73, while 1st support hitstoday at 105.84 and below there at 105.46.