The Swiss continues to slide further to the downside, although losses have been rather subdued given today’s disappointing Swiss data. The KOF Leading Indicator fell back below the 100.0 level, far below marketforecasts for a modest increase as the combination of sluggish Euro zone conditions and potential Russiansanctions are taking their toll on sentiment. A move below the 1.1000 level looks to be in the cards sooner ratherthan later, so any near-term rebound back towards the 110.82 area should be used to approach the short side ofthe market.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The close below the 9-day moving average is a negative short-term indicatorfor trend. The market is in a bearish position with the close below the 2nd swing support number. The next downside objective is now at 109.93. Selling may soon dry up since the RSI is under 20 indicating the market isextremely oversold. The next area of resistance is around 110.53 and 110.84, while 1st support hits today at110.08 and below there at 109.93.