Carryover support has done the heavy lifting for the Swiss Franc this morning as it has been able tobounce back from a fresh 21/2-week low, but the market is having a difficult time sustaining upside momentum.Tomorrow’s Swiss CPI number is casting a long shadow over the market, particularly after last week’s very lowEuro zone inflation reading, as continued Swiss deflation may provoke the SNB into taking additional easingmeasures over the near future. The December Swiss may climb up towards the 109.82 level later today, but willneed a fresh infusion of safe-haven support to see any large extension of today’s rebound in front of the criticalSwiss inflation reading tomorrow morning.
Technical Outlook
CHF (DEC): The close below the 40-day moving average is an indication the longer-term trend hasturned down. Momentum studies trending lower at mid-range should accelerate a move lower if support levels aretaken out. The market’s short-term trend is negative as the close remains below the 9-day moving average. Theswing indicator gave a moderately negative reading with the close below the 1st support number. The nextdownside objective is now at 108.88. The next area of resistance is around 110.09 and 110.68, while 1st supporthits today at 109.20 and below there at 108.88.