Despite the disappointing European economic news overnight, the Swiss has managed a corrective bounce. However, thick overhead consolidation resistance up at 1.0723 to 1.0740 should provide a fairlysignificant barrier to the bull camp directly ahead. Like the Euro, the Swiss needs a wave of positive globaleconomic sentiment to throw off an entrenched downtrend pattern.
Technical Outlook: A crossover down in the daily stochastics is a bearish signal. Momentum studies aredeclining, but have fallen to oversold levels. The market’s short-term trend is negative as the close remains belowthe 9-day moving average. The daily closing price reversal up is a positive indicator that could support higherprices. It is a slightly negative indicator that the close was under the swing pivot. The next downside target is nowat 105.98. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area of resistance isaround 106.71 and 106.95, while 1st support hits today at 106.23 and below there at 105.98.