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.
By Mohammed Isah
NEW YORK (
) -- The dollar-Swiss franc currency pair (USD-CHF) saw more declines this week, breaking through 0.9297, its 2011 low, to resume its long-term downtrend.
Further weakness is likely next week.
The pair likely will target the 0.9200 psychological level, with a violation there paving the way for further weakness toward the other psychological levels of 0.9100 and then 0.9000.
The dollar-Swiss franc's weekly relative strength index is bearish and pointing lower, supporting this view.
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Conversely, for the pair to reverse its current downside vulnerability, a climb back to more than 0.9772/0.9783 must occur, although this doesn't seem likely right now.
Such a climb would set up the pair for further strength toward 0.9913 level, the Dec. 8 high, and then 1.0066, the Dec. 1 high. A cap is likely to occur there and turn the dollar-Swiss franc back down.
Overall, with a continued bearish offensive causing the dollars-Swiss franc currency pair to resume its broader weakness, further declines are likely.
--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.