The December Swiss is finding mild pressure this morning, but along with the Euro has generally held its ground in the upper portion of this week’s trading range. Rumors that the SNB were selling Swiss Francs against Dollars to dampen this rally proved to be ill-founded as the market drove up into new high ground, but that action indicates some growing apprehension that this up move has gone “too high, too fast” given the low levels of Swiss inflation. The December Swiss may slide back towards the 110.64 level later this morning, and once again is looking vulnerable to an extensive downside move during the next few sessions.
Technical Outlook
CHF (DEC): The rally brought the market to a new contract high. Rising stochastics at overbought levels warrant some caution for bulls. The market’s close above the 9-day moving average suggests the short term trend remains positive. The close over the pivot swing is a somewhat positive setup. The next upside objective is 112.05. With a reading over 70, the 9-day RSI is approaching overbought levels. The next area of resistance is around 111.69 and 112.05, while 1st support hits today at 110.87 and below there at 110.40.