With the Euro showing some modest recovery action overnight it would appear that the Swiss and Eurobulls are hopeful that a meeting between Ukraine and Russian officials later today might deflate tensions.However, the Swiss and Euro remain under a cloud of deflationary concern given recent Euro zone data and it isalso possible that political turmoil in France and expectations for more ECB easing is set to keep the Swiss andEuro off balance. In fact, for the Swiss to forge a noted bounce off the potentially critical 1.09 level probablyrequires disappointing US data and conciliatory dialogue from Putin!
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. It is a slightly negative indicator that the close was under the swing pivot. The nextdownside objective is now at 108.89. The next area of resistance is around 109.44 and 109.60, while 1st supporthits today at 109.09 and below there at 108.89.