Like the Yen, the Swiss is benefiting from overt weakness in the Dollar and a lack of leadership throughout the currency markets. Down trend channel resistance in the December Swiss is seen this morning up at 1.0443 but that trend line resistance falls down to 1.0436 on Tuesday. In retrospect, the Swiss was partially undermined in the lead up to a referendum that could have restricted immigration, required more central bank gold holdings and could have removed fiscal windfalls for foreigners living inside Switzerland. Therefore a certain
amount of relief might be seen in the Swiss but we doubt that the market will be able to get out from under what has become a well-defined down trend channel pattern.
Technical Outlook: A crossover down in the daily stochastics is a bearish signal. Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. The intermediate trend has turned down with the cross over back below the 18-day moving average. The swing indicator gave a moderately negative reading with the close below the 1st support number. The next downside target is 102.89. The next area of resistance is around 103.88 and 104.42, while 1st support hits today at 103.12 and below there at 102.89.