While the Swiss temporarily regained its footing overnight, prices have come back under pressure in thewake of comments from the SNB that Swiss rates won’t rise anytime soon. We also suspect that the Swiss willcontinue to see spillover selling from the Euro which is expected to implement fresh easing efforts later thismorning. If the ECB fails to implement fresh easing efforts, or the action is seen as ineffective or insufficient, thatshould simply facilitate fresh news lows in the Swiss and Euro directly ahead.
Technical Outlook: The daily stochastics have crossed over down which is a bearish indication. Dailystochastics are trending lower but have declined into oversold territory. A negative signal for trend short-term wasgiven on a close under the 9-bar moving average. It is a slightly negative indicator that the close was lower thanthe pivot swing number. The next downside target is now at 104.04. Selling may soon dry up since the RSI isunder 20 indicating the market is extremely oversold. The next area of resistance is around 104.89 and 105.13,while 1st support hits today at 104.35 and below there at 104.04.