By Mohammed Isah of fxtechstrategy.com
NEW YORK (
) -- The dollar-Swiss franc currency pair (USD-CHF) closed slightly higher this week after halting its corrective weakness started from the 1.0065 level.
However, its failure to hold above the 0.9847 level could be signaling the pair is headed lower again.
If that's the case, the dollar-Swiss franc will target its Dec. 6 low at 0.9725, then its Nov. 5 low at 0.9546 and then its long-term support at 0.9462 (the 2010 low).
The latter level could provide support and turn the pair higher again. If it breaks, however, the pair will resume its long-term weakness and target 0.9300.
If the dollar-Swiss franc can hold at more than 0.9725 and climb back to more than 0.9847, that would place our downside view on hold and turn risk toward the 1.0065 level printed on Dec. 1.
The pair would need to clear that level to resume its broader corrective recovery started from 0.9462. It could then target its Sept. 17 high at 1.0182 and possibly go higher.
--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.