The December Swiss continues to have trouble maintaining upside momentum, as carryover pressure from the Euro zone has dragged it back below the key 110.00 level early this morning. Even so, the Swiss Franc is approaching a fresh 3 month high versus the Euro – an event that may not play well with SNB officials who have consistently talked up how their currency as “highly valued”. The December Swiss may fall back towards the 109.62 level, and is starting look more and more vulnerable to a sizable downside breakout over the next few sessions.
Technical Outlook
CHF (DEC): Momentum studies are trending higher but have entered overbought levels. The market’s close above the 9-day moving average suggests the short-term trend remains positive. The outside day up is somewhat positive. A positive setup occurred with the close over the 1st swing resistance. The next upside objective is 110.68. The 9-day RSI over 70 indicates the market is approaching overbought levels. The next area of resistance is around 110.39 and 110.68, while 1st support hits today at 109.67 and below there at 109.23.