USD-CHF: Likely to Head Lower

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 dollar-Swiss franc currency pair closed this past week lower after reversing its gains from the previous week.

Now USD-CHF's next likely target is 0.8890, the currency pair's Nov. 3 low.

If the pair breaches that target, it will then head toward the 0.8700 psychological level.

A breach of that level will open the door to further weakness toward 0.8609 and then 0.8568.

USD-CHF's weekly relative strength index is bearish and pointing lower, supporting this view.

On any advances, the dollar-Swiss franc currency pair will target 0.9091, its Feb. 9 low.

A reversal of roles as resistance is expected to occur at that level. However, if that does not occur, the next target will be 0.9299, USD-CHF's Feb. 16 high.

Further out, the pair will target 0.9504, its Jan. 13 low, and then 0.9591.

Overall, however, USD-CHF remains biased to the downside on further weakness.

-- 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 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.