The Swiss has broken out to the downside from its post-“melt-up” consolidation zone as the formation of the new Greek government this morning helped to trigger a safe haven exodus. This sort of price action indicates that the post-SNB gains were exaggerated as the Swiss economy will continue to face headwinds from the Euro zone as well as from their suddenly much-stronger currency. The Swiss looks to have further downside left to go with a near-term target of 1.1212.
Technical Outlook: Positive momentum studies in the neutral zone will tend to reinforce higher price action. A positive signal for trend short-term was given on a close over the 9-bar moving average. It is a slightly negative indicator that the close was under the swing pivot. The near-term upside objective is at 116.18. The next area of resistance is around 114.90 and 116.18, while 1st support hits today at 113.16 and below there at 112.69.