Weekly Technical Strategist: USDCHF
May 22, 2011 5:25 AM ET
Mohammed Isah's Blog
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USDCHF: Set To Extend Weakness.
USDCHF: The risk of a return below the 0.9553 level, its 2011 low is now developing after the pair reversed almost all of its previous week gains to close at 0.8773 on Friday. Prior to its present price action, USDCHF has been recovering since torching a low of 0.8553 following its long term downtrend started from the 1.1727 in May 2010. With that said, on continued weakness, the 0.8553 level will be targeted with a break of there triggering the resumption of its long term downtrend towards the 0.8500 level, its psycho level. A violation of that level will set the stage for further weakness towards the 0.9400 and 0.9300 levels, all representing its psycho levels. Its weekly RSI is bearish and pointing lower suggesting further weakness. Alternatively, the risk to this analysis will be a return above the 0.8946 level, its May 13’2011 high. Further out, resistance comes in at the 0.9013 level, its April 19’2011 high and possibly higher towards its April 11 2011 high at 0.9104.
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