Although Dollar/Swiss sustained a marginal loss on Friday possibly trying to initiate a recovery higher, its overall long term downtrend continues to dominate.
Guest post by www.fxtechstrategy.com
It opened the week lower as at the time of this analysis today and now looks to return below the 0.8779 level, its 2011 low with a firm break and hold below that level pushing USDCHF towards the 0.8700 level, representing its psycho level. Further down, risk exists for more declines towards the 0.8600 and 0.8600 levels.
Its daily and weekly RSI are bearish and pointing lower supporting this view. Alternatively, a break and hold above the 0.8944 level will have to occur to reduce its present bear pressure and then open up further upside risk towards the 91.66 level and subsequently the 0.9368 level, its Mar 09’2011 high.
We expect that level to cap gains if seen and turn the pair lower. All in all, the pair remains vulnerable to the downside and looks to recapture the 0.8779 level and possibly lower.
