After taking out last Friday’s high and the previous monthly high by a minimal margin, the Swiss Franchas turned lower and has fallen back below its 50-day moving average this morning. Carryover pressure from theEuro and the loss of safe-haven support have more than offset any benefit from a positive Swiss Payroll reading,which may set the stage for a further downside move early this week. The December Swiss may find near-termsupport around the 109.64 area, and once again is looking vulnerable to an extensive move below the recenthighs.
Technical Outlook
CHF (DEC): The market now above the 60-day moving average suggests the longer-term trendhas turned up. Stochastics are at mid-range but trending higher, which should reinforce a move higher ifresistance levels are taken out. The market now above the 18-day moving average suggests the intermediatetermtrend has turned up. The market has a bullish tilt coming into today’s trade with the close above the 2ndswing resistance. The near-term upside objective is at 111.01. The next area of resistance is around 110.71 and111.01, while 1st support hits today at 109.71 and below there at 109.00.