Carryover pressure from the Euro after the German ZEW survey helped the Swiss Franc blow throughthe key 109.51 support level early this morning, with the market showing few signs of retesting that area withoutseeing negative vibes coming out of Washington later today. The loss of safe-haven support has left the SwissFranc vulnerable to an extensive downside move, as stubbornly low inflation levels are going to weigh heavily onprices going forward. The December Swiss may head towards the 108.86 level later today, and may be heading down towards much lower price levels over the next few weeks.
Technical Outlook
CHF (DEC): Daily stochastics are trending lower but have declined into oversold territory. Themarket’s short-term trend is negative as the close remains below the 9-day moving average. The close over thepivot swing is a somewhat positive setup. The next downside target is 109.28. The next area of resistance isaround 110.28 and 110.69, while 1st support hits today at 109.58 and below there at 109.28.