USD-CHF: Further Weakness Expected

After reversing recent gains, the dollar-Swiss franc currency pair appears headed for more losses.
By Mohammed Isah ,

By Mohammed Isah of fxtechstrategy.com

NEW YORK (

TheStreet

) -- After the dollar-Swiss franc currency pair (USD-CHF) this week wiped out its recent gains, it is likely to return to its major support level at 0.9462. (The pair lost its recovery momentum at the 1.0065 level.)

Before the dollar-Swiss franc can test the aforementioned support level at 0.9462, it will need to first break through 0.9546, its Nov. 5 low.

If it eventually breaks and hold below the 0.9462 level, the pair could make a run at 0.9350 and then 0.9300.

Both the daily and weekly relative strength indices (RSI) are bearish and pointing lower, supporting our view.

In order for the dollar-Swiss franc to resume its corrective recovery, it must break through the 1.0065 level and hold above it. This should create scope for more strength towards its Sept. 17 high at 1.0182.

In conclusion, the dollar-Swiss franc should resume its long-term weakness after it ended its near-term recovery and closed strongly lower this past week.

--Written by Mohammed Isah.

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Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces

The Professional Suite

for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.

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