The December Swiss has consolidated last week’s updraft within a relatively tight trading range, but continues to have trouble with breeching the 110.00 level early this week. SNB President Jordan called the Swiss Franc a “highly valued” currency, which may be a fairly overt signal that their 1.20 floor rate with the Euro will be here for well into the future. The December Swiss should find decent support around the 109.53 area early this week, but a failure to hold that level could lead an extensive downside move.
Technical Outlook
CHF (SEP): Rising stochastics at overbought levels warrant some caution for bulls. The market’s short-term trend is positive on the close above the 9-day moving average. The market could take on a defensive posture with the daily closing price reversal down. It is a slightly negative indicator that the close was lower than the pivot swing number. The next upside target is 110.41. The market is becoming somewhat overbought now that the RSI is over 70. The next area of resistance is around 110.13 and 110.41, while 1st support hits today at 109.59 and below there at 109.33.