The December Swiss rallied up to a fresh 16-month high this morning, but has seen an abrupt turnaround and has fallen all the back towards unchanged levels. Today’s reversal has come after a stronger than expected Swiss PMI number, which may not bode well for the Swiss Franc given that it is already seen in some quarters as a clear second choice to the Yen as a safe-haven destination. The December Swiss should find decent support around the 110.54 area later today, but a failure to hold above yesterday’s low could lead to considerable follow-through selling as risk appetites start to improvement.
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 close over the pivot swing is a somewhat positive setup. The near-term upside objective is at 111.13. The 9-day RSI over 70 indicates the market is approaching overbought levels. The next area of resistance is around 110.86 and 111.13, while 1st support hits today at 110.32 and below there at 110.06.