A modest safe-haven bid is helping to lift the Swiss Franc at the start of this week, as the market wasable to look past a lukewarm reading on Swiss PPI early this morning. While it may not find the same degree ofpressure that the Yen will receive if and when a Washington budget agreement is developed, the DecemberSwiss remains vulnerable to a severe downside move if the 109.51 support level is violated. The December Swissmay climb up towards the 110.12 level during today’s trading, and along with the Yen could see a sharpturnaround if there are positive vibes out of Washington later today.
Technical Outlook
CHF (DEC): Stochastics trending lower at midrange will tend to reinforce a move lower especially ifsupport levels are taken out. The close below the 9-day moving average is a negative short-term indicator fortrend. The daily closing price reversal down puts the market on the defensive. The market’s close below the pivotswing number is a mildly negative setup. The next downside target is 109.04. The next area of resistance isaround 110.08 and 110.59, while 1st support hits today at 109.31 and below there at 109.04.