Dollar/Swiss continues to weaken, closing lower for a fourth week in a row after ending its two-week correction at 0.9340 in late Mar’2011.
Guest post by www.fxtechstrategy.com
This development now leaves USDCHF targeting further declines towards its psycho level at the 0.8600 level where a breach will set the stage for more weakness towards other psycho levels at the 0.8500 level and subsequently the 0.8400 levels. Its weekly momentum studies are bearish and pointing lower suggesting further weakness.
Alternatively, on a corrective recovery, the pair will initially aim at the 0.8779 level, representing its April 21’2011 low with a turn above there pushing it further higher towards its Mar 16’2011 low at 0.8897.
We expect a reversal of roles as resistance to occur at this level and turn the pair back down in the direction of its long term downtrend. 