Weaker than expected Swiss PPI data has added further pressure to the Swiss Franc this morning,which is finding little in the way of fresh safe-haven support from today’s risk averse mood in global markets. TheEuro/Swiss spread remains in close proximity to yesterday’s 7 1/2 month low, which could leave the Swiss Francvulnerable to a much large pullback if today’s US PPI numbers exceeds forecasts. The March Swiss may findnear-term support around the 112.20 level, and is in need of a fresh inflow of safe-haven support to preventfurther chart damage.
Technical Outlook: A crossover down in the daily stochastics is a bearish signal. Stochastics turningbearish at overbought levels will tend to support lower prices if support levels are broken. A positive signal fortrend short-term was given on a close over the 9-bar moving average. The swing indicator gave a moderatelynegative reading with the close below the 1st support number. The next downside target is 111.75. The market isapproaching overbought levels with an RSI over 70. The next area of resistance is around 112.82 and 113.31,while 1st support hits today at 112.04 and below there at 111.75.