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 (
) -- A sharp selloff has seen the dollar-Swiss franc currency pair (USD-CHF) resume its long-term downtrend and has opened the door to further weakness in the days ahead.
The 0.7800 level comes in as the immediate downside objective, with a cut through that level allowing for more declines toward the 0.7700 and 0.7600 psychological levels.
The use of psychological levels as support is necessary due to the absence of any visible support.
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The dollar-Swiss franc's weekly and monthly relative strength indices (RSI) are bearish and pointing lower, suggesting further weakness.
On any recovery, the USD-CHF's July 13 low at 0.8079 will come in as resistance and is expected to turn the pair lower.
Higher up, resistance lies at 0.8524, the pair's July 1 high, and at 0.8892, its May 24 low.
All in all, USD-CHF remains vulnerable to the downside in the long term as it looks to weaken further in the days ahead.
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-- 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.