Fresh Russian sanction threats are hanging on the Swiss and Euro at the start of the new trading week and that bearish tilt is enhanced by disappointing Swiss economic news. However, the decline to the lowest levelsince last September leaves the technical picture in the Swiss in the bear’s camp. Soft 2nd quarter Swiss growthnews and talk of positive US employment data at the end of this week, should leave the bias in the Swiss pointingdownward. Next support is seen down at 1.08.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may be drying upsoon. A negative signal for trend short-term was given on a close under the 9-bar moving average. The closebelow the 2nd swing support number puts the market on the defensive. The next downside objective is now at108.49. The market is approaching oversold levels on an RSI reading under 30. The next area of resistance isaround 109.19 and 109.58, while 1st support hits today at 108.65 and below there at 108.49.