The Swiss remains pinned down near its recent lows and harsh rhetoric from Putin overnight, expectations of fresh easing from the ECB and a very resilient US Dollar should leave the Swiss mired in a downward motion on its charts. As in the Euro, traders might expect to see a major spike down and reversal in the Swiss directly ahead as the US payrolls on Friday promises to be a watershed event. As it stands now, the trade has already priced in a pretty solid US data point on Friday.
Technical Outlook: The sell-off took the market to a new contract low. The downside crossover (9 below 18) of the moving averages suggests a developing short-term downtrend. Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. The market’s close below the 1st swing support number suggests a moderately negative setup for today. The next downside objective is 101.72. The next area of resistance is around 102.66 and 103.16, while 1st support hits today at 101.94 and below there at 101.72.