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 (
) -- Although the cross is now consolidating following the EUR-CHF recovery rally from 1.0069 to 1.1556, it continues to retain that recovery tone. We expect its present price consolidation to end and trigger further strength toward the July 22 high of 1.1829 with a turn above there allowing for further strength toward the 1.2178 level.
>> Get your currencies analysis on the go with TheStreet's iPad app.
Further out, resistance resides at the 1.2344 level, the high set July 4.
On the downside, our alternative scenario is a return below the Aug. 12 low of 1.1094. This set the stage for further weakness toward 1.0685 and ultimately the 2011 low of 1.0069 .
All in all, while EURCHF remains biased to the upside in the near term on correction, its overall long term trend points lower.
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
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.