Talk that the SNB is working to weaken the Swiss is swirling in the marketplace following rising commercial bank cash levels and that combined with renewed anxiety toward Eastern Europe, could set the stage for a downside extension in the Swiss directly ahead. The failure to hold above 1.0758 in the March Swiss, could project a slide down to at least 1.07.
Technical Outlook: Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. The market’s short-term trend is negative as the close remains below the 9-day moving average. The daily closing price reversal down puts the market on the defensive. It is a slightly negative indicator that the close was under the swing pivot. The next downside target is now at 107.03. The next area of resistance is around 108.91 and 109.72, while 1st support hits today at 107.57 and below there at 107.03.