Another range down extension in the Swiss leaves the January lows down at 97.50 in view, especially with the Euro declines facilitating bearish attitudes toward all Euro centric currencies. Ultimate downside targeting in the March Swiss is seen down at 97.77.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. The market’s short-term trend is negative as the close remains below the 9-day moving average. The defensive setup, with the close under the 2nd swing support, could cause some early weakness. The next downside objective is now at 98.93. The 9-day RSI under 20 suggests the market is extremely oversold. The next area of resistance is around 100.81 and 101.89, while 1st support hits today at 99.33 and below there at 98.93.