USD-CHF: Further Weakness Likely

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (fxtechstrategy.com) -- The dollar-Swiss franc currency pair ended its third straight week of losses since it turned away from the 0.9591 level on Jan. 9.

USD-CHF faces the risk of further declines in the coming week, toward the 0.9063 and 0.9075 levels, which are its Nov. 30 low and 0.50 Fibonacci retracement (0.8558-0.9591 rally), respectively.

A violation of those levels would extend the weakness toward the dollar-Swiss franc's 0.9000 psychological level.

We could see a breather at 0.9000 because of the psychological nature of that support level, but if it is taken out, expect more weakness to shape up toward 0.8890, the Nov. 3 low.

USD-CHF's weekly relative strength index is bearish and pointing higher, supporting this view.

Alternatively, on any recovery, the dollar-Swiss franc currency pair would aim at the 0.9175 level, its Dec. 8 low, followed by the 0.9240 level, where a reversal of roles as support would likely occur, turning the pair lower.

However, if this failed to happen, the pair could strengthen further toward the 0.9504 level, its Jan. 13 low, and then 0.9591.

Further out, resistance resides at 0.9772, the dollar-Swiss franc's Feb. 11 high. On the whole, the pair remains biased to the downside on further near-term weakness.

-- Written by Mohammed Isah.

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