A fresh and massive downside extension overnight in the Swiss leaves long term downside targeting at 1.05. Ongoing Russian sanctions, talk of another Russian aid convoy and slack UK retail sales results, leaves theoutlook for the entire Euro zone region suspect. Sell 30 to 40 point rallies in the Swiss, looking for the downtrendpattern to extend.
Technical Outlook: Daily stochastics are trending lower but have declined into oversold territory. Themarket’s short-term trend is negative as the close remains below the 9-day moving average. The market is in abearish position with the close below the 2nd swing support number. The next downside target is 105.23. Somecaution in pressing the downside is warranted with the RSI under 30. The next area of resistance is around106.23 and 106.80, while 1st support hits today at 105.45 and below there at 105.23.