Switzerland’s economy may not look as good as it has in the past, unemployment rising over the past 7 months, deflation and a decrease in consumer confidence, but it is in a much better state than the Euro area as a whole; which is the reason why the Swiss central bank had to let go of the peg. After the SFR strengthened to its unpegged level below 1.00 it retraced to a high of 1.08, very close to its 50% Fibonacci retracement and close to the Ichimoku cloud. It has since then drifted through the cloud and back below it, the conversion line has penetrated the base line on the downside. The picture looks like we are ready for some more downward action. MACD line is rather flat, but on the downside also leaving plenty of room for downward price action.