Lukewarm global risk appetites have helped the Swiss Franc consolidate yesterday’s recovery as themarket is closing in on yesterday’s 1-month high now that the major European data points are out of the way. TheYen’s recent downdraft has strengthened the Swiss Franc’s resume as a safe-haven destination, but it will likelyrequire some sluggish US data readings later today in order to make any large-scale extension to its recentuptrend. The December Swiss could climb up towards the 111.00 level this morning, but needs to seeimprovement with Swiss inflation data before it can sustain a rally into new high ground.
Technical Outlook: The market now above the 40-day moving average suggests the longer-term trendhas turned up. Studies are showing positive momentum but are now in overbought territory, so some caution iswarranted. The market’s short-term trend is positive on the close above the 9-day moving average. With the closeover the 1st swing resistance number, the market is in a moderately positive position. The near-term upside targetis at 111.48. The next area of resistance is around 111.12 and 111.48, while 1st support hits today at 110.14 andbelow there at 109.53.