By Mohammed Isah of fxtechstrategy.com
NEW YORK (
) -- We expect the euro-Swiss franc currency pair (EUR-CHF) to move still lower as it weakened to test a low of 1.2718 this week.
Although the cross currency pair is holding slightly above strong support at 1.2764, its 2010 low, it appears set to decisively violate that level and resume its broader long-term downtrend.
If and when it does break that level, it will then target the psychological level at 1.2500. A break through there would leave the pair targeting 1.2400.
The weekly studies of the euro-Swiss franc are bearish and pointing lower, supporting this view.
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Alternatively, if the pair stages a corrective recovery, it initially will aim at its broken support-turned resistance at 1.2931. A reversal of roles would likely occur there, turning the pair lower again. Further out, resistance stands at 1.3121, the Dec. 7 high, with a break through there allowing for further strength toward 1.3228, the Nov. 12 high.
Overall, however, further downside threats are expected.
--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.