Like the Euro and Yen, the Swiss has managed a recent consolidation low formation on the charts, but there would not appear to be a fundamental shift to suggest an end to a well-defined down trend pattern. The SNB overnight reiterated the 1.20 to the Euro limit for the Swiss and that news is simply lost in the ebb and flow of deflationary fears. Pushed into the market we would be a seller of the March Swiss on a bounce to 98.94.
Technical Outlook: Daily stochastics are showing positive momentum from oversold levels, which should reinforce a move higher if near term resistance is taken out. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. The market could take on a defensive posture with the daily closing price reversal down. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The near-term upside objective is at 99.30. Some caution in pressing the downside is warranted with the RSI under 30. The next area of resistance is around 98.98 and 99.30, while 1st support hits today at 98.30 and below there at 97.93.