A decent Swiss PMI reading this morning has added to recent positive Swiss economic results, but isonly providing minimal benefit to the Swiss Franc this morning as a sluggish Euro has dragged it well intonegative territory this morning. The Swiss Franc may be showing modestly better appeal than the Yen as a safehavendestination, particularly with headlines from the Ukraine starting to rattle global markets, but a lack ofprogress on the Swiss inflation front should keep the SNB’s 1.20 Euro floor rate firmly in place and in turn keepthe Swiss Franc tracking the ebb and flow of Euro zone sentiment fairly closely. The December Swiss may findnear-term support around the 109.72 level,
Technical Outlook
CHF (DEC): The cross over and close above the 40-day moving average is an indication thelonger-term trend has turned positive. Rising stochastics at overbought levels warrant some caution for bulls. Themarket’s short-term trend is positive on the close above the 9-day moving average. With the close higher than thepivot swing number, the market is in a slightly bullish posture. The near-term upside target is at 111.05. The nextarea of resistance is around 110.63 and 111.05, while 1st support hits today at 109.93 and below there at 109.64.