News of the weakest Swiss manufacturing PMI in 1 1/2 years and a reading that is just barely above the Growth/no growth level of 50.0 should leave the bear camp confident and in control of the trend. Using weeklycharts, the next downside targeting in the Swiss is seen down at 1.0356. Rumors that the SNB might be set tobuy Euros could be another issue that adds to the downward march in the Swiss.
Technical Outlook: The daily stochastics have crossed over up which is a bullish indication. Dailymomentum studies are on the rise from low levels and should accelerate a move higher on a push through the 1stswing resistance. The market’s close below the 9-day moving average is an indication the short-term trendremains negative. The market setup is somewhat negative with the close under the 1st swing support. The neartermupside objective is at 105.87. Selling may soon dry up since the RSI is under 20 indicating the market isextremely oversold. The next area of resistance is around 105.34 and 105.87, while 1st support hits today at104.28 and below there at 103.74.