Near term downside targeting in the Swiss is seen down at least 100 points below the current market. Aswe have said a number of times this year, to get a quick bottom in the Swiss and Euro probably requires aUkraine/Russian peace deal, a series of improving US and Euro zone data points and perhaps even a moresignificant near term beating in the Swiss off signs of acceleration in the US economy. The trend is down, buttraders should beware of short term oversold conditions.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lower especially ifsupport levels are taken out. The close below the 9-day moving average is a negative short-term indicator fortrend. The market’s close below the pivot swing number is a mildly negative setup. The next downside target is103.78. The next area of resistance is around 105.01 and 105.31, while 1st support hits today at 104.25 andbelow there at 103.78.