Even with sluggish inflation and eroding safe-haven support providing headwinds, the Swiss Franc hasbeen able to post moderate gains early in today’s session. As with their Euro zone neighbors, the Swiss Francmay need to see stronger Swiss economic data later this week in order to extend this current recovery rally. TheDecember Swiss may rise up towards the 109.74 area later in the session, but may have trouble building on theseearly gains if global risk sentiment continues to mend.
Technical Outlook
CHF (DEC): Daily stochastics are showing positive momentum from oversold levels, which shouldreinforce a move higher if near term resistance is taken out. The market’s close above the 9-day moving averagesuggests the short-term trend remains positive. The daily closing price reversal up is a positive indicator thatcould support higher prices. The market has a slightly positive tilt with the close over the swing pivot. The neartermupside objective is at 110.02. The next area of resistance is around 109.72 and 110.02, while 1st supporthits today at 108.98 and below there at 108.53.