USD-CHF: More Declines Likely

NEW YORK ( -- With the dollar-Swiss franc currency pair (USD-CHF) breaking and holding below key support at the 0.8928/0.8918 zone to close the week lower, further downward price action is expected toward the 0.8706 level in the new week.

The pair has been under intense bear pressure since losing upside momentum at the 1.9316 level, its October high.

A convincing violation of the 0.8706 level will pave the way for a run at USD-CHF's Sept. 15 low at 0.8647, where a break will aim at 0.8537, the Sept. 7 low.

The dollar-Swiss franc's weekly relative strength index (RSI) is bearish and pointing lower, supporting this view.

Alternatively, for the pair restart its short-term uptrend that is now on hold, a break and close above the 1.9316 level, its October high, is required.

If seen, this will open the door to further gains toward the 0.9400 psychological level, with a breach there creating the scope for further upside toward 0.9503, the pair's Feb. 22 high.

Further out, resistance comes in at 0.9772 level, the pair's Feb. 11 high.

All in all, the pair remains vulnerable to the downside on further correction.

Mohammed Isah is a technical strategist and head of research at, 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 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 At, 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.