On top of substantial carryover pressure from the Euro zone, the Swiss Franc has been impacted by asurprisingly weak Swiss PMI number and plunged below the key 110.00 level for the first time in two weeks.Comparatively strong Swiss sentiment readings had been one of the key components with the Swiss Franc’srecent safe-haven revival, as chronically low Swiss inflation levels will take on a more prominent role with drivingthe direction of the market. The December Swiss should find decent support around the 109.66 level this morning,but still remains vulnerable to an even larger downside move as its residual safe-haven support continues to meltaway.
Technical Outlook
CHF (DEC): Declining momentum studies in the neutral zone will tend to reinforce lower priceaction. The close below the 18-day moving average is an indication the intermediate-term trend has turned down.The close below the 1st swing support could weigh on the market. The next downside target is 109.47. The nextarea of resistance is around 110.85 and 111.59, while 1st support hits today at 109.79 and below there at 109.47.