While today’s gains may be modest at best, the Swiss Franc has recovered from Tuesday’s downsidebreakout by climbing back above the key 109.51 price level this morning. A sharp jump in the Swiss ZEW surveymay be helping to extend this rebound, but the Swiss Franc remains vulnerable to another swift pullback if andwhen a US debt deal shows signs of completion. The December Swiss may rise up towards the 109.87 level latertoday, but will have limited upside potential as long as the market remains optimistic that US politicians can gettheir act together.
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 below the1st swing support could weigh on the market. The next downside target is now at 108.51. The next area ofresistance is around 110.05 and 110.55, while 1st support hits today at 109.04 and below there at 108.51.