USDCHF: With USDCHF reversing most of its previous week losses to close higher on Friday, the pair is entering the new week bullish and targeting further strength. In such a case, the 0.9299 level, its Feb 16’2012 high will come in as the next upside target. Further out, resistance resides at the 0.9504 level, its Jan 13’2012 low where a violation will aim at the 0.9591 level, its Jan 2012 high. Its weekly RSI is bearish and pointing higher supporting this view. Alternatively, the risk to our analysis will be a failure of the pair’s current corrective recovery which could see it return to the 0.8929 level, its Feb 24’2012 low. Below here will resume its broader weakness towards the 0.8890 level, its Nov 03’2011 low. Further down, support lies at the 0.8700 level, its psycho level with a breach opening the door for further weakness towards the 0.8609 level. On the whole, while corrective recovery continues to shape up, its broader downside risk started from the 0.9591 level is not over yet.
