The Swiss has fallen into fresh new lows for the move in the wake ofdisappointing Euro zone headline unemployment results, lingering concerns of slowing from Russian sanctions and perhaps because of expectations of positive US data and Fed dialogue later today. The Swiss is oversold and we suspect the SNB will respond to the latest slide with additional threats of intervention. However, to alter the well-defined downtrend channel probably requires a recovery back above 99.18.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. The market tilt is slightly negative with the close under the pivot. The next downside target is now at 98.60. The 9-day RSI under 20 suggests the market is extremely oversold. The next area of resistance is around 99.48 and 99.92, while 1st support hits today at 98.82 and below there at 98.60.