Mixed results with today’s Swiss economic data have helped to keep the Swiss Franc in a fairly tighttrading range this morning, as it may need the assistance of weak US jobs data to continue recovering fromyesterday’s losses. With Swiss deflation much more entrenched than with their Euro zone neighbors, the SwissFranc will need to find fresh safe-haven support to climb back into its consolidation price range from earlier thisweek. The December Swiss may find resistance around the 109.36 level going into the US data window, andwould be the most vulnerable to a swift downside move if there is a positive surprise from today’s US Payrollnumbers.
Technical Outlook
CHF (DEC): The close below the 60-day moving average is an indication the longer-term trend hasturned down. Daily stochastics declining into oversold territory suggest the selling may be drying up soon. Themarket’s short-term trend is negative as the close remains below the 9-day moving average. The swing indicatorgave a moderately negative reading with the close below the 1st support number. The next downside target isnow at 107.31. The next area of resistance is around 110.13 and 110.86, while 1st support hits today at 108.35and below there at 107.31.