The December Swiss was able to benefit from strong Swiss economic data this morning, and has been able to match Wednesday’s 71/2-month high early in today’s session. The KOF Leading Indicator reaching its highest level since late last year, which should help the Swiss Franc gain further ground on the Euro late this week. The December Swiss is likely to climb further into new high ground and reach the 110.50 area if today’s US data comes in softer than expected, but further upside may be limited given the recent concern of SNB officials towards their “highly valued” currency.
Technical Outlook
CHF (DEC): Rising stochastics at overbought levels warrant some caution for bulls. The market’s close above the 9-day moving average suggests the short-term trend remains positive. The market’s close below the pivot swing number is a mildly negative setup. The near-term upside objective is at 110.29. The next area of resistance is around 110.10 and 110.29, while 1st support hits today at 109.74 and below there at 109.56.