The Swiss remains in a well-defined down trend pattern, with global deflation fears, lingering drag from Russian sanctions and technical damage adding into the bear’s case. Seeing fresh weakness in the Swiss in the face of significant weakness in the Euro suggests that the Swiss remains ultra-weak and vulnerable. In order to find support in the Swiss, one has to look to monthly charts and to the 97.29 level, which was last registered in September of 2010.
Technical Outlook: The market made a new contract low on the break. The stochastics indicators are rising from oversold levels, which is bullish and should support higher prices. A negative signal for trend shortterm was given on a close under the 9-bar moving average. The swing indicator gave a moderately negative reading with the close below the 1st support number. The near-term upside target is at 99.17. More downside action may be limited by the RSI under 20 putting the market in extremely oversold territory. The next area of resistance is around 98.59 and 99.17, while 1st support hits today at 97.71 and below there at 97.40.