A sizable rebound from l-week lows has helped to lift the Swiss Franc into positive territory this morning,but the market may be looking for additional help from this side of the Atlantic in order to extend these early gains.A better than expected reading from the KOF leading indicator was the catalyst for today’s rebound, but the SwissFranc will need a fresh infusion of safe-haven support in order to decisively lift clear of the overnight lows. TheDecember Swiss may rise up towards the 111.58 level with weak US data readings later this morning, butcontinued improvement with global risk sentiment still leaves it fairly vulnerable to a sizable pullback over the nextfew sessions.
Technical Outlook
CHF (DEC): A crossover down in the daily stochastics is a bearish signal. Daily stochastics turninglower from overbought levels is bearish and will tend to reinforce a downside break especially if near term supportis penetrated. The market’s close below the 9-day moving average is an indication the short-term trend remainsnegative. The market is in a bearish position with the close below the 2nd swing support number. The nextdownside target is 110.65. The next area of resistance is around 111.63 and 112.10, while 1st support hits todayat 110.91 and below there at 110.65.