While holding onto most of yesterday’s huge gains, the Swiss Franc has yet to extend this recovery rallyto a new weekly high this morning. Without the benefit of fresh safe-haven support and with chronically low Swissinflation levels, it may be difficult for the Swiss Franc to make a further upside run at the early October highs. TheDecember Swiss may find near-term resistance around the 111.08 level, and in spite of the Dollar’s extensiveweakness it is once again showing signs of being “top-heavy” at these currently high price levels.
Technical Outlook
CHF (DEC): The crossover up in the daily stochastics is a bullish signal. Stochastics are at midrangebut trending higher, which should reinforce a move higher if resistance levels are taken out. The cross overand close above the 18-day moving average indicates the intermediate-term trend has turned up. The market’sclose above the 2nd swing resistance number is a bullish indication. The near-term upside objective is at 112.21.The next area of resistance is around 111.69 and 112.21, while 1st support hits today at 110.02 and below thereat 108.86.