The December Swiss was able to bounce back from last night’s moderate pressure, but is making little headway with recovering from yesterday’s sizable key reversal from a new 16-month high. While there is clearly some safe-haven support flowing towards the Swiss Franc due to events in the US and Italy, dovish post-meeting comments from the ECB meeting may lead to a retest of the overnight lows. The December Swiss may find nearterm support around the 110.36 level, but yesterday’s abrupt negative turnaround may be another sign that it is “top-heavy” at these current price levels.
Technical Outlook
CHF (DEC): Studies are showing positive momentum but are now in overbought territory, so some caution is warranted. A positive signal for trend short-term was given on a close over the 9-bar moving average. The downside closing price reversal on the daily chart is somewhat negative. It is a slightly negative indicator that the close was lower than the pivot swing number. The near-term upside objective is at 111.65. With a reading over 70, the 9-day RSI is approaching overbought levels. The next area of resistance is around 111.01 and 111.65, while 1st support hits today at 109.99 and below there at 109.62.