The December Swiss is finding moderate pressure this morning as the market continues to slide further away from the key 110.00 level this morning. Although there are still questions over the composition of the ruling coalition, this week’s German election results will cause the Swiss Franc to lose ground to the Euro early this week. The December Swiss may find support around the 109.53 level later this morning, and remains vulnerable to a sizable pullback over the next few sessions.
Technical Outlook
CHF (SEP): Momentum studies are trending higher but have entered overbought levels. A positive signal for trend short-term was given on a close over the 9-bar moving average. It is a mildly bullish indicator that the market closed over the pivot swing number. The near-term upside target is at 110.35. With a reading over 70, the 9-day RSI is approaching overbought levels. The next area of resistance is around 110.16 and 110.35, while 1st support hits today at 109.72 and below there at 109.46.