Not surprisingly another new low for the move was seen in the Swiss overnight. Clearly the trade continues to hold the Dollar on a pedestal and that in turn leaves the bias pointing downward in the Swiss. As suggested many times in the recent past, to forge a bottom in the Swiss probably requires hope of a tempering of Russian sanctions, or signs of renewed growth throughout the Euro zone.
Technical Outlook: The market broke to a new contract low. Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. A negative signal for trend short-term was given on a close under the 9-bar moving average. The market’s close below the 1st swing support number suggests a moderately negative setup for today. The next downside objective is 97.95. With a reading under 20, the 9-day RSI indicates the market is extremely oversold. The next area of resistance is around 99.08 and 99.52,
while 1st support hits today at 98.30 and below there at 97.95.