The move to negative interest rates earlier this week has facilitated fresh weakness in the Swiss, with a new low forged yesterday in the direct aftermath of the SNB latest policy move. Sell rallies to 1.0231 and look for fresh lows ahead, especially if US scheduled data shows anything positive later this morning.
Technical Outlook: The market was pushed to a new contract low. A crossover down in the daily stochastics is a bearish signal. Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. The market tilt is slightly negative with the close under the pivot. The next downside objective is now at 100.99. The next area of resistance is around 102.88 and 103.58, while 1st support hits today at 101.59 and below there at 100.99.