After surviving two retests of the 109.51 support level in as many sessions, the Swiss Franc is showingmoderate signs of strength early in today’s trading session. A downside breakout may be off the table for now, butnegative Swiss inflation levels and a modest erosion of safe-haven support will make it difficult for the SwissFranc to climb back towards the highs of the early October consolidation price zone. The December Swiss couldtake this rebound up towards the 110.38 level later this morning, but is unlikely to fully recover from Wednesday’sdowndraft without a fresh infusion of safe-haven support.
Technical Outlook
CHF (DEC): Momentum studies trending lower at mid-range should accelerate a move lower ifsupport levels are taken out. The market’s close below the 9-day moving average is an indication the short-termtrend remains negative. It is a slightly negative indicator that the close was lower than the pivot swing number.The next downside objective is now at 109.23. The next area of resistance is around 110.08 and 110.44, while 1stsupport hits today at 109.48 and below there at 109.23.