With a significant range down probe overnight, the September Swiss reached down temporarily to the lowest level since last September. Therefore the Swiss was temporarily oversold and has bounced ratherimpressively from the initial lows but it is very difficult to point to a reason for a major low and reversal unlessthere is a move toward a permanent solution between the Ukraine and rebel forces. In fact, the Swiss Presidentholds out little hope for a positive progression in the talks. Given the steep slide in the Swiss this month, sellersmight need to wait for a bounce back to 1.0723 to re-sell the Swiss.
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 market’s close below the 1st swing support number suggests a moderately negative setup for today. The nextdownside target is now at 106.46. More downside action may be limited by the RSI under 20 putting the market inextremely oversold territory. The next area of resistance is around 107.23 and 107.63, while 1st support hits todayat 106.65 and below there at 106.46.