Like the Euro, slack Euro zone lending activity in November, residual concerns toward Greece and negative inflation headlines from Spain leave the path of least resistance in the Swiss pointing downward. The best hope of a bounce in the Swiss is off year-end short covering as the fundamentals just don’t support a reversal of the downtrend pattern.
Technical Outlook: The market made a new contract low on the break. Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. The close below the 9-day moving average is a negative short-term indicator for trend. It is a slightly negative indicator that the close was under the swing pivot. The next downside objective is now at 100.64. The next area of resistance is around 101.51 and 101.96, while 1st support hits today at 100.85 and below there at 100.64.