Weak inflation levels have come back to haunt the Swiss Franc once again, as the weakest Swiss yearon-year PPI reading since August of 2012 is weighing heavily on the market this morning. Today’s numbers willprovide further ammunition for the SNB to start up fresh easing measures, although the market may wait to getpast today’s Yellen testimony before the Swiss Franc finds stronger downside momentum. The December Swissmay find near-term support around the 108.82 level, and may be setting up for an extensive downside moveduring the next few weeks.
Technical Outlook
CHF (DEC): The daily stochastics have crossed over up which is a bullish indication. Dailymomentum studies are on the rise from low levels and should accelerate a move higher on a push through the 1stswing resistance. A negative signal for trend short-term was given on a close under the 9-bar moving average.The market has a slightly positive tilt with the close over the swing pivot. The next upside target is 109.80. Thenext area of resistance is around 109.58 and 109.80, while 1st support hits today at 108.92 and below there at108.49.