The December Swiss has consolidated yesterday’s recovery this morning, but is starting to lose ground to the Euro and is showing few signs of retesting Tuesday’s high for the move. If there is some sustained improvement with global risk sentiment, even with a lack of resolution to the US government shutdown, the Swiss Franc may be vulnerable to an extensive pullback from these current price levels. The December Swiss may find near-term support around the 110.86 area, and may need a fresh injection of safe-haven support to reach new high ground.
Technical Outlook
CHF (DEC): Daily stochastics have risen into overbought territory which will tend to support reversal action if it occurs. A positive signal for trend short-term was given on a close over the 9-bar moving average. The upside daily closing price reversal gives the market a bullish tilt. The market has a slightly positive tilt with the close over the swing pivot. The next upside target is 111.85. With a reading over 70, the 9-day RSI is approaching overbought levels. The next area of resistance is around 111.40 and 111.85, while 1st support hits today at 110.36 and below there at 109.78.