While the Swiss Franc saw a severe reversal of fortune in the wake of yesterday’s ECB negative depositrate news story, it has managed to find its footing after ECB President Draghi’s comments early in today’ssession. A decent Swiss trade surplus number has helped to underpin this morning’s early gains, but the SwissFranc may need to find additional carryover support from the Euro zone in order to extend this recovery. TheDecember Swiss should find support around the 109.10 area and in spite of today’s rebound still remainsvulnerable to a sizable downside move if global risk sentiment does not improve.
Technical Outlook
CHF (DEC): The market back below the 60-day moving average suggests the longer-term trendcould be turning down. Positive momentum studies in the neutral zone will tend to reinforce higher price action.The close above the 9-day moving average is a positive short-term indicator for trend. The outside day down andclose below the previous day’s low is a negative signal. There could be some early pressure today given themarket’s negative setup with the close below the 2nd swing support. The next upside objective is 110.67. Thenext area of resistance is around 109.83 and 110.67, while 1st support hits today at 108.47 and below there at107.95.