While continuing to track the Euro, the Swiss Franc reached a new 2-year high before sliding backtowards unchanged levels this morning. Recent difficulties with the Dollar and Yen may have made the SwissFranc a safe-haven destination of choice, but recent improvement with global risk appetites and chronically weakSwiss inflation could make it difficult to build strongly onto these recent sizable gains. The December Swissshould find near-term support around the 112.26 level this morning but with more than 2 cents in gains duringDecember, the Swiss remains vulnerable to a sizable near-term pullback.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. Themarket’s close above the 9-day moving average suggests the short-term trend remains positive. The close overthe pivot swing is a somewhat positive setup. The near-term upside target is at 112.74. With a reading over 70,the 9-day RSI is approaching overbought levels. The next area of resistance is around 112.54 and 112.74, while1st support hits today at 112.05 and below there at 111.74.