USD-CHF Declines on Correction

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 ( fxtechstrategy.com) -- The USD-CHF pair has given back its gains from last week and could be heading further lower toward the 0.8928 to 0.8918 zone. This area is a key support zone and its break could mean deeper corrective weakness possibly toward the 0.8810 level, its daily exponential moving average.

Further downside support comes in at its Sept. 15 low of 0.8647. A move below here would pave the way toward the 0.8574 level. Its daily RSI is bearish and pointing lower supporting its corrective weakness.

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Alternatively, for USD-CHF to halt its present bear threats, it will have to break and close above the 1.9316 level, its October high. This would set the stage for a move toward the April 1 high of 0.9340 and possibly higher, toward the 0.9400 level.

All in all, the pair may be retaining its short-term uptrend but now faces corrective weakness.

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 The Professional Suite 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.