The continued erosion of safe-haven support has put the Swiss Franc squarely on the defensive thismorning, as prices have broken out below the key 111.58 support level early in today’s trading. With little in theway of major Swiss economic data until later in the week, a strong set of readings from US economic numbers islikely to put additional pressure on the Swiss Franc later this morning. The December Swiss may slide down tothe 111.14 level if global risk sentiment continues to mend, and is starting to look vulnerable to a fairly sizable pullback during the next few sessions.
Technical Outlook
CHF (DEC): Rising stochastics at overbought levels warrant some caution for bulls. The closeabove the 9-day moving average is a positive short-term indicator for trend. The market’s close below the pivotswing number is a mildly negative setup. The next upside target is 112.27. The next area of resistance is around111.93 and 112.27, while 1st support hits today at 111.44 and below there at 111.28.