The December Swiss is finding a mild safe-haven bid this morning, but for the moment is staying well below last Friday’s new 2013 high. SNB officials have continued to talk up their floor rate versus the Euro in spite of recent positive Swiss economic results, which will make it difficult for the Swiss Franc to rise further into new high ground unless the situation in Washington continues to deteriorate. The December Swiss may climb up towards the 110.70 level later in today’s session, but for the moment will remain a second-choice safe-haven destination to the Yen even if this current “risk off” mood gains further steam.
Technical Outlook
CHF (DEC): The market rallied to a new contract high. Momentum studies are trending higher but have entered overbought levels. The close above the 9-day moving average is a positive short-term indicator for trend. The market has a bullish tilt coming into today’s trade with the close above the 2nd swing resistance. The near-term upside target is at 111.52. The 9-day RSI over 70 indicates the market is approaching overbought levels. The next area of resistance is around 111.01 and 111.52, while 1st support hits today at 109.92 and below there at 109.33.