Improving global risk sentiment has more than offset a decent rebound in a key private reading of SwissConsumption this morning, as the Swiss Franc is having problems with building on last Friday’s reversal. TheSwiss Franc would clearly be a major beneficiary of weak US data readings later this morning, but last week’ssevere pullback indicates that safe-haven support will not be enough on its own for prices to retest their recenthighs. The March Swiss could bounce back towards the 111.94 level later today, but will have limited upside aslong as risk appetites remain positive heading into the end of this year.
Technical Outlook: Momentum studies trending lower at mid-range could accelerate a price break ifsupport levels are broken. The market’s close below the 9-day moving average is an indication the short-termtrend remains negative. The daily closing price reversal up is a positive indicator that could support higher prices.Market positioning is positive with the close over the 1st swing resistance. The next downside target is now at110.80. The next area of resistance is around 112.14 and 112.52, while 1st support hits today at 111.28 andbelow there at 110.80.