With the Swiss showing some modest short covering balancing by the bounce off this week’s lows, that should make it easier to get short the Swiss, looking for an eventual downside extension. As in the Euro, aworsening situation in the Ukraine and the prospect of even more sanctions leaves the path of least resistance inthe Swiss pointing downward. Down trend channel selling resistance in the September Swiss is at 1.0941 today.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may be drying upsoon. The market’s close below the 9-day moving average is an indication the short-term trend remains negative.The downside closing price reversal on the daily chart is somewhat negative. The close over the pivot swing is asomewhat positive setup. The next downside target is now at 108.93. The next area of resistance is around109.49 and 109.74, while 1st support hits today at 109.09 and below there at 108.93.