While staying well inside of Monday’s trading range, the Swiss Franc has found carryover support fromthe Euro zone to climb moderately higher this morning. While SNB officials continue to defend their 1.20 floor ratewith the Euro, their hints that the Swiss Franc remains overvalued at these levels may not bode well for its longertermprospects. The December Swiss may find resistance around the 110.24 level, but may have to rely onpositive vibes out of the Euro zone in order to maintain upside momentum.
Technical Outlook
CHF (DEC): The close under the 40-day moving average indicates the longer-term trend could beturning down. The upside crossover (9 above 18) of the moving averages suggests a developing short-termuptrend. Momentum studies are rising from mid-range, which could accelerate a move higher if resistance levelsare penetrated. The close above the 9-day moving average is a positive short-term indicator for trend. Thedownside closing price reversal on the daily chart is somewhat negative. The market’s close below the 1st swingsupport number suggests a moderately negative setup for today. The next upside objective is 110.64. The nextarea of resistance is around 110.07 and 110.64, while 1st support hits today at 109.23 and below there at 108.95.