A fresh lower low for the move overnight leaves the trend pointing down and we stand by the prediction of a near term return to levels below 1.05. The SNB is powerless to support the currency and it is probably on watch by political powers inside the country to avoid damaging Swiss companies again by rash policy moves.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. The market’s short-term trend is negative as the close remains below the 9-day moving average. The close below the 2nd swing support number puts the market on the defensive. The next downside objective is 106.56. The next area of resistance is around 109.75 and 111.49, while 1st support hits today at 107.29 and below there at 106.56.