USD-CHF: More 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 this week failed to follow through higher on its gains from the previous week and closed lower on Friday.

That means the pair is likely to decline further in the new week.

If it does, USD-CHF will target the 0.9063 and 0.9075 levels, which mark its Nov. 30 low and 0.50 Fibonacci retracement (0.8558-0.9591 rally), respectively.

A violation of these levels will extend weakness toward the 0.9000 psychological level.

We may see a breather there, but if the pair takes out 0.9000, we expect more declines to build toward 0.8890, the Nov. 3 low.

The dollar-Swiss franc's weekly relative strength index is bearish and pointing lower, supporting this view.

Alternatively, on any recovery, the dollar-Swiss franc will aim at 0.9262, its Feb. 6 low, followed by 0.9374, its Jan. 23 high, and possibly go even higher, toward 0.9504, its Jan. 13 low.

We would expect USD-CHF to rest here and turn lower, but if it breaches 0.9504, the pair could move toward 0.9591, its Jan. 9 high.

On the whole, the dollar-Swiss franc currency pair remains biased to the downside on further near-term weakness.

-- Written by Mohammed Isah.

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