The September Swiss has put together a modest gain this morning, but remains firmly rooted to the bottom end of yesterday’s severe downdraft. While today’s KOF Leading Indicator posted a stronger than expected gain, lukewarm vibes from their Euro zone neighbors are likely weigh on the Swiss Franc heading into the holiday weekend. Unless Syria or emerging markets are able to revive the Swiss Franc’s safe-haven appeal, prices may be headed for a retest of the mid-August lows. The September Swiss Franc may find near-term support around the 107.28 level, and may have to rely on improving global risk appetites in order to put the brakes on this current sell off.
Technical Outlook
CHF (SEP): A bearish signal was triggered on a crossover down in the daily stochastics. Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. The market back below the 18-day moving average suggests the intermediate-term trend could be turning down. The defensive setup, with the close under the 2nd swing support, could cause some early weakness. The next downside objective is now at 106.43. The next area of resistance is around 108.01 and 108.86, while 1st support hits today at 106.80 and below there at 106.43.