The Swiss franc has seen somewhat subdued action ever since the summer of 2011′s wild rally all the way up to above $1.40. Political maneuvers trying to take the volatility out of the franc seemed to have worked. Since last August’s high of just above $1.40, the franc has sold off all the way down to the $1.02 level, which was actually broken for a short period in July 2012. Now, along with the euro, the franc has put in a nice rally in August and September, reaching a recent high of around $1.08.
We look for the franc to continue its recent rally and head above $1.08. Our key pivot of $1.06 is looking like excellent support, and if the franc breaks above $1.08, we look for the Franc to complete a potential “reverse head and shoulders” all the way up to $1.11. We think that overall the franc is trading at oversold levels and that investors will reawaken their appetite for this perceived safe-haven currency.
On another safe haven note, we find gold having no problem staying strong above our key technical pivot of $1,740. As long as gold can stay above $1,740, we look for recent highs of $1,800 to be broken and for gold to continue higher, as major central banks of the world flood the financial system with more currency. Our next key level above for the gold market is $1,840.
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