Since putting the brakes on its late October downdraft, the Swiss Franc has coiled in a tightening pricepattern over the past few sessions which may be setting the stage for a breakout move late this week. ChronicSwiss deflation has ramped up market expectations that the SNB may start up fresh easing measures at theirDecember meeting, so the Swiss Franc may need a fresh infusion of safe-haven support to hold its ground abovethe recent lows. The December Swiss should find near-term support around the 109.36 area, but could be lookingat a much larger downside move if a dovish ECB creates a fresh source of pressure.
Technical Outlook
CHF (DEC): The moving average crossover down (9 below 18) indicates a possible developingshort-term downtrend. Momentum studies are still bearish but are now at oversold levels and will tend to supportreversal action if it occurs. The market’s short-term trend is negative as the close remains below the 9-day movingaverage. The market has a slightly positive tilt with the close over the swing pivot. The next downside target is109.19. The next area of resistance is around 109.91 and 110.18, while 1st support hits today at 109.42 andbelow there at 109.19.