While unable to hold its ground near this morning’s high for the move, the Swiss Franc is managing tohold onto modest gains coming into this morning’s trading. Weak Swiss inflation levels have been a sore spot fortheir economy recently, so the Swiss Franc could be vulnerable to a sharp negative reaction if the ECB meetingresults in some dovish guidance on Euro zone inflation. The December Swiss could find support around the110.70 level, and is likely to track the Euro fairly close during this morning’s trading.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend to supportreversal action if it occurs. The close above the 9-day moving average is a positive short-term indicator for trend.The market has a slightly positive tilt with the close over the swing pivot. The near-term upside target is at 111.48.The next area of resistance is around 111.20 and 111.48, while 1st support hits today at 110.42 and below thereat 109.91.