Like the Euro, the Swiss remains under the threat of deflationary fears, from geopolitical angst flowing from the Ukraine and perhaps most significantly from the residual dominance of the US economy. With the freshmilitary conflict in the Ukraine noted overnight and disappointing Germany business survey results in theheadlines, the Swiss remains under the same cloud that resulted in a sharp slide last week. Initial support is 1.09but there doesn’t appear to be a fundamental reason for that level to hold up!
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The market’s close below the 9-day moving average is an indication the shorttermtrend remains negative. The market could take on a defensive posture with the daily closing price reversaldown. The close below the 1st swing support could weigh on the market. The next downside objective is 108.90.The next area of resistance is around 109.75 and 110.11, while 1st support hits today at 109.15 and below thereat 108.90.