The December Swiss was able to recover a sizable portion of last Friday’s pullback, but has only lifted back towards the middle of its recent consolidation range. The Swiss Franc may be competing with the Yen as a safe-haven destination during the Washington budget impasse, but the Swiss National Bank has already set their marker down with their 1.20 floor ratewith the Euro and is clearly wary ofthe Swiss Franc’s high valuation given their nation’s very low inflation levels. The December Swiss may rally back above the 111.00 level once again this morning, but last Friday’s collapse could be a sign that the market is “top-heavy” at these current price levels.
Technical Outlook
CHF (DEC): A crossover down in the daily stochastics is a bearishsignal. Daily stochastics turning lower from overbought levels is bearish and will tend to reinforce a downside break especially if near term support is penetrated. A negative signal for trend short-term was given on a close under the 9-bar moving average. The market is in a bearish position with the close below the 2nd swing support number. The next downside target is now at 109.29. The next area of resistance is around 110.92 and 111.81, while 1st support hits today at 109.66 and below there at 109.29.