USD-CHF: Further Weakness Expected

By Mohammed Isah of fxtechstrategy.com After the dollar-Swiss franc currency pair (USD-CHF) this week wiped out its recent gains, it is likely to return to its major support level at 0.9462. (The pair lost its recovery momentum at the 1.0065 level.) Before the dollar-Swiss franc can test the aforementioned support level at 0.9462, it will need to first break through 0.9546, its Nov. 5 low. If it eventually breaks and hold below the 0.9462 level, the pair could make a run at 0.9350 and then 0.9300. Both the daily and weekly relative strength indices (RSI) are bearish and pointing lower, supporting our view. In order for the dollar-Swiss franc to resume its corrective recovery, it must break through the 1.0065 level and hold above it. This should create scope for more strength towards its Sept. 17 high at 1.0182. In conclusion, the dollar-Swiss franc should resume its long-term weakness after it ended its near-term recovery and closed strongly lower this past week. --Written by Mohammed Isah.