Weekly Technical Strategist: USDCHF
May 29, 2011 8:28 AM ET
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Seeking Alpha Analyst Since 2009
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,Thestreet.com 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 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.
USDCHF: Breaks The 0.8553 Level, Extends Weakness.
USDCHF: Having followed through lower on the back of its previous week losses and broken below its May 04’2011 low at 0.8553 at the end of the week, further downside pressure is likely in the new week.With that said, a push further lower will target the 0.8400 level, its psycho level though the pair has to initially overcome its nearby support at 0.8500 level, its psycho level to aim at 0.8400. Further down, support stands at the 0.8300 level and then the 0.8200 level, all representing its psycho levels. The pair’s psycho levels are necessary as supports as USDCHF is now seen in an uncharted territory. Its weekly RSI is bearish and pointing lower suggesting further weakness. Alternatively, on any recovery, its broken support at the 0.8553 level should reverse roles and provide resistance thus turning it lower. However, on a push through that level, risk of further strength will build up towards the 0.8706 level, its May 2011 low and subsequently the 0.8946 level, its May 13’2011 high. Further out, resistance comes in at the 0.9013 level, its April 19’2011 high.
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