The September Swiss has been able to hold onto modest strength in spite of today’s “risk off” mood in global markets this morning, although it has given back a sizable portion of overnight gains during the past few hours. While the SNB’s 1.20 floor rate with the Euro has curbed the Swiss Franc’s safe-haven appeal, fresh flightto- safety inflows from Turkey and Eastern Europe are helping it to regain a large portion of recent losses versus the Euro. The September Swiss may find near-term support around the 108.32 level after the US data window, but should hold its ground fairly close to last week’s highs as long as global markets continue to hold onto a “risk off” mood.
Technical Outlook
CHF (SEP): Rising stochastics at overbought levels warrant some caution for bulls. A positive signal for trend short-term was given on a close over the 9-bar moving average. The market tilt is slightly negative with the close under the pivot. The next upside target is 108.89. The next area of resistance is around 108.68 and 108.89, while 1st support hits today at 108.22 and below there at 107.96.