A gap down extension in the Swiss starts the New Year out on an extremely weak track. Initial support isseen down at the December low of 111.18 but more significant up trend channel support is seen down at 1.1006 today, but that support line rises to 1.1016 on Monday. One might have expected the Swiss to have performedbetter relative to the Euro in the face of slack Chinese data and residual concerns toward French manufacturing.In the end, the path of least resistance is pointing downward and a return to 1.1000 might be in the cards in theweeks ahead.
Technical Outlook: A bearish signal was triggered on a crossover down in the daily stochastics.Momentum studies trending lower at mid-range should accelerate a move lower if support levels are taken out.The close under the 18-day moving average indicates the intermediate-term trend could be turning down. Themarket setup is somewhat negative with the close under the 1st swing support. The next downside objective is111.49. The next area of resistance is around 112.53 and 113.09, while 1st support hits today at 111.73 andbelow there at 111.49.