Carryover support from the Euro zone has helped the Swiss Franc to post sizable gains this morning,although it may be difficult to climb above the 50-day moving average and Wednesday’s weekly high withoutfurther improvement with global risk appetites. Recent comments by SNB officials defending their current 1.20floor rate with the Euro will insure that the Swiss Franc takes plenty of direction from the ebb and flow of Eurozone sentiment, so today’s strong German Ifo numbers are likely to keep prices well supported going into theweekend. The December Swiss may rise up towards the 110.04 later today, but may need to see positive Swissdata points next week to make any large upmove from these current price levels.
Technical Outlook
CHF (DEC): Positive momentum studies in the neutral zone will tend to reinforce higher priceaction. The close above the 9-day moving average is a positive short-term indicator for trend. With the closehigher than the pivot swing number, the market is in a slightly bullish posture. The next upside target is 109.99.The next area of resistance is around 109.80 and 109.99, while 1st support hits today at 109.14 and below thereat 108.66.