Carryover support from the Euro zone may be helping the Swiss Franc to stay well clear of lastThursday’s low, and to make a modest recovery from heavy losses sustained late last week. With the loss of safehavensupport likely to cause fresh headwinds, however, the Swiss Franc may need to see definitiveimprovement on the Swiss inflation front in order to sustain any rebound from these current price levels. TheDecember Swiss may rise up towards the 108.90 level later today, but remains vulnerable to another large-scaledownside leg before it is able to find a near-term floor.
Technical Outlook
CHF (DEC): Momentum studies are declining, but have fallen to oversold levels. A negative signalfor trend short-term was given on a close under the 9-bar moving average. It is a slightly negative indicator thatthe close was under the swing pivot. The next downside target is 107.48. The 9-day RSI under 30 indicates themarket is approaching oversold levels. The next area of resistance is around 109.16 and 109.85, while 1stsupport hits today at 107.98 and below there at 107.48.