A successful retest of the 109.50 support area has helped the Swiss Franc bounce back from earlypressure, although prices remain on the defensive coming into this morning’s trading. Today’s Swiss CPI numbercame in slightly weaker than expected but has not seen a positive year-on-year reading since September of 2011,when the SNB started their 1.20 floor rate with the Euro, and that further underscores the deflationary hurdle thatthe Swiss economy has to clear. The December Swiss may find support around the 109.62 level later in today’ssession, and remains vulnerable to a sizable downside move over the next few sessions.
Technical Outlook
CHF (DEC): Momentum studies trending lower at mid-range should accelerate a move lower ifsupport levels are taken out. The market’s short-term trend is negative as the close remains below the 9-daymoving average. The daily closing price reversal up on the daily chart is somewhat positive. It is a mildly bullishindicator that the market closed over the pivot swing number. The next downside objective is 109.06. The nextarea of resistance is around 110.32 and 110.55, while 1st support hits today at 109.58 and below there at 109.06.