While Swiss economic data remains comparatively strong to their Euro zone neighbors, weak inflation isa problem shared by both currencies. With a key SNB official stating that the 1.20 floor rate with the Euro remainsan “essential tool”, the Swiss Franc will have a difficult time regaining upside momentum without finding a strongresurgence of global risk appetites. The December Swiss may find support around the 108.68 level later today,and remains vulnerable to a sizable downside move over the near future.
Technical Outlook
CHF (DEC): Daily momentum studies are on the rise from low levels and should accelerate a movehigher on a push through the 1st swing resistance. The market’s short-term trend is negative as the close remainsbelow the 9-day moving average. It is a slightly negative indicator that the close was under the swing pivot. Thenear-term upside objective is at 109.87. The next area of resistance is around 109.55 and 109.87, while 1stsupport hits today at 108.89 and below there at 108.54.