The loss of safe-haven support has kept the Swiss Franc on the defensive this week, but a positive tonefrom recent Swiss economic data may be keeping further losses in check this morning. With carryover pressurecoming from the Euro zone this morning, however, the Swiss Franc may have to rely on a negative reception forthis morning’s US data in order to recover from early pressure. The December Swiss could slide down towardsthe 110.62 level during today’s trading, and still looks fairly vulnerable to a sizable downside move over the nextfew sessions.
Technical Outlook
CHF (DEC): Stochastics turning bearish at overbought levels will tend to support lower prices ifsupport levels are broken. The market’s short-term trend is negative as the close remains below the 9-day movingaverage. It is a slightly negative indicator that the close was under the swing pivot. The next downside target isnow at 110.37. The next area of resistance is around 111.74 and 112.21, while 1st support hits today at 110.82and below there at 110.37.