Talk of a rate cut by the SNB to combat the drag from the excessive volatility in the Swiss currency, leaves the Swiss under pressure. With fresh technical damage on the charts and little in the way of solid support until the 1.05 level, the bear camp has to feel really confident.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. The market’s close below the 9-day moving average is an indication the shortterm trend remains negative. The swing indicator gave a moderately negative reading with the close below the 1st support number. The next downside objective is now at 106.03. The next area of resistance is around 107.41 and 108.16, while 1st support hits today at 106.35 and below there at 106.03.