Like the Euro, the Swiss has also seen a fresh downside extension to the lowest level since mid-2012 in the wake of fresh deflationary fears and expectations for aggressive QE action from the ECB. However, the Swiss economy is starting to see signs of increased activity in manufacturing that in turn might be partly the result of the extremely favorable Swiss exchange rate! While the Swiss might be set to bottom ahead of the Euro, pervasive knock-on weakness from the Euro is likely to keep the Swiss mired in a near term downward motion on the charts.
Technical Outlook: The market was pushed to a new contract low. Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. A negative signal for trend shortterm was given on a close under the 9-bar moving average. The market is in a bearish position with the close below the 2nd swing support number. The next downside target is now at 99.40. The market is approaching oversold levels on an RSI reading under 30. The next area of resistance is around 100.38 and 100.97, while 1st support hits today at 99.60 and below there at 99.40.