Like the Euro, the Swiss is getting a short covering bounce and it would not appear as if a shift in bearish fundamentals has taken place. We will continue to suggest that a bottom in the Swiss and Euro could require a full-fledged Peace deal in the Ukraine. Unfortunately Peace in the Ukraine has about the same low probability of better Euro zone and Swiss economic data. Selling resistance is seen at 1.0306 and then at 1.0406 but we doubt the market can reach the higher resistance level.
Technical Outlook: The market made a new contract low on the break. Momentum studies are declining, but have fallen to oversold levels. The close below the 9-day moving average is a negative short-term indicator for trend. The upside daily closing price reversal gives the market a bullish tilt. The close over the pivot swing is a somewhat positive setup. The next downside target is now at 101.66. The next area of resistance is around 102.91 and 103.21, while 1st support hits today at 102.13 and below there at 101.66.