USD-CHF Faces Downward Pressure
By Mohammed Isah of fxtechstrategy.com
NEW YORK (
) -- The dollar-Swiss franc currency pair is now vulnerable to the downside after it reversed about 70% of its recovery from 0.9462 to 0.9970.
The dollar-Swiss franc pair could even return to its year-to-date low at 0.9462.
If the bulls do not come in to defend that level, we could see further weakness toward 0.9350 and then 0.9300.
The pair's weekly relative strength index is bearish and pointing lower, supporting this view.
For the pair to resume its corrective recovery higher, it needs to break and hold above 0.9970. This should create scope for more strength toward the Sept. 17 high at 1.0066 and possibly toward the Sept. 17 high at 1.0182.
Overall, with the dollar-Swiss franc currency pair having ended its recovery and closing sharply lower this week, it's set to resume its medium- to long-term downtrend.
--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
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.
