USD-CHF: Near-Term Bias Is Lower

Although the dollar-Swiss franc halted its declines to close slightly higher the past week, it continues to hold on to most of its weakness started from the 0.9591 level.

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This suggests that USD-CHF's present attempt on the upside is corrective and should fade. That will eventually return it to its Jan. 27 low at 0.9114 with a violation of that level shifting the focus to the 0.9063 and 0.9075 levels, which mark its Nov. 30 low and 50 Fibonacci retracement (0.8558-0.9591 rally), respectively. A clearance of these levels will extend price weakness towards the dollar-Swiss franc's psychological level at 0.9000. We may see a breather at 0.9000 because of the level's psychological importance, but if the pair breaks below it, expect more declines to build toward the Nov. 3 low at 0.8890.USD-CHF's weekly RSI is bearish and pointing lower, supporting this view. Alternatively, on any recovery, the currency pair will aim at 0.9339, its Jan. 25 low, followed by 0.9405, its Jan. 13 low. A reversal of roles as resistance is likely to occur there and turn the pair back down. However, if that level fails to hold, the pair could strengthen further toward 0.9504, its Jan. 13 low, and ultimately 0.9591. Overall, the pair remains biased to the downside in the near term..>To contact the staff member responsible for this article, click here: Ross Snel.>To follow the writer on Twitter, go to http://twitter.com/fxtechstrategy.>To submit a news tip, send an email to: tips@thestreet.com.

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