Not surprisingly the Swiss has had the rug yanked out from under the bull camp in the wake of Draghi comments that the ECB is poised to throw everything at the European economy in order to avoid deflation. If thebest case scenario is avoiding spiraling Euro zone deflation, then it is not surprising to see the Swiss and Eurolosing out consistently to the Dollar. Initial support in the December Swiss is seen down at 1.0322 and then notuntil the 1.0272 level.
Technical Outlook: Momentum studies are trending higher from mid-range, which should support a movehigher if resistance levels are penetrated. A positive signal for trend short-term was given on a close over the 9-bar moving average. It is a slightly negative indicator that the close was lower than the pivot swing number. Thenear-term upside target is at 104.98. The next area of resistance is around 104.68 and 104.98, while 1st supporthits today at 104.10 and below there at 103.82.