The December Swiss was able to recover a small portion of recent lost ground versus the Euro this morning, but is showing little inclination for climbing above Monday’s high for the move before the FOMC meeting results are digested by the market. Today’s sizable jump in Swiss investor sentiment will be a source of early support, but the Swiss Franc will need to see stronger global risk sentiment in order to sustain this current up move. The December Swiss will find near-term support just above the 107.90 level, but could drop down to a new weekly low if Fed tapering measures are at or above market expectations.
Technical Outlook
CHF (SEP): Stochastics are at mid-range but trending higher, which should reinforce a move higher if resistance levels are taken out. The market’s short-term trend is positive on the close above the 9-day moving average. The daily closing price reversal up is a positive indicator that could support higher prices. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The next upside objective is 108.39. The next area of resistance is around 108.24 and 108.39, while 1st support hits today at 107.90 and below there at 107.70.