A sizable bounce from a new monthly low has relieved the pressure on the Swiss Franc this morning, butit still has a long way to go in order to repair chart damage sustained in the past 5 sessions. The loss of safehavensupport may not be as negative a factor as it has been for the Yen this morning, but low inflation levels willmake it difficult for the Swiss Franc to hold its ground above the recent lows. The December Swiss may findsupport around the 109.65 level later in today’s session, but could be on the verge of an extensive downsidemove if the late September lows at 109.51 are violated during this week’s trading.
Technical Outlook
CHF (DEC): Declining momentum studies in the neutral zone will tend to reinforce lower priceaction. The market back below the 18-day moving average suggests the intermediate-term trend could be turningdown. The outside day down and close below the previous day’s low is a negative signal. The defensive setup,with the close under the 2nd swing support, could cause some early weakness. The next downside objective isnow at 108.75. The next area of resistance is around 110.60 and 111.48, while 1st support hits today at 109.24and below there at 108.75.