With the Swiss falling below the 1.05 level in each of the last 2 trading sessions, Swiss leading indicators coming in the weakest in 3 years it is clear that the volatility in the Swiss currency has indeed damaged the Swiss economy. The bear camp retains control but the Swiss might see a slight bounce from weakness in early US data, before reversing course and falling back later in the session.
Technical Outlook: The major trend has turned down with the cross over back below the 60-day moving average. The daily stochastics gave a bearish indicator with a crossover down. Daily stochastics are trending lower but have declined into oversold territory. The market’s short-term trend is negative as the close remains below the 9-day moving average. The outside day down is somewhat negative. The close below the 1st swing support could weigh on the market. The next downside target is now at 104.08. The next area of resistance is around 105.54 and 106.25, while 1st support hits today at 104.46 and below there at 104.08.