An ongoing pattern of lower highs on the charts combines with impressive action in the Euro points to even lower Swiss action ahead. In fact, the SNB appears to be facilitating even lower action in the Swiss by warning that a stronger Swiss will weigh on the economic recovery effort. Near term downside targeting is seen down at 1.05 especially given the new-found strength in the Euro which in the recent past has been the primary source of lift for the Swiss.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. The close below the 18-day moving average is an indication the intermediate-term trend has turned down. It is a slightly negative indicator that the close was lower than the pivot swing number. The next downside target is now at 107.48. The next area of resistance is around 108.65 and 109.16, while 1st support hits today at 107.81 and below there at 107.48.