Thursday’s key reversal may have been an early warning sign, as the Swiss Franc has given backmoderate overnight gains to fall well into negative territory early this morning. Safe-haven support is unlikely to goaway anytime soon, but this sort of price action two sessions in a row may indicate that the Swiss Franc mayhave gotten ahead of itself with recent upside momentum. The December Swiss could slide down towards the111.64 area later today, and could be looking at an even larger pullback if there are positive surprises from USdata this morning.
Technical Outlook
CHF (DEC): The market made a new contract high on the rally. Studies are showing positivemomentum but are now in overbought territory, so some caution is warranted. The market’s close above the 9-day moving average suggests the short-term trend remains positive. The daily closing price reversal down putsthe market on the defensive. The close over the pivot swing is a somewhat positive setup. The near-term upsideobjective is at 112.67. The market is approaching overbought levels with an RSI over 70. The next area ofresistance is around 112.34 and 112.67, while 1st support hits today at 111.87 and below there at 111.72.