USDCHF: The pair closed lower for a third week in row the past week, opening the door for more declines in the new week. USDCHF broke through the 0.8706 level, its Sept 20’2011 low and its Sept 15’2011 low at 0.8647 last week to turn further bear pressure towards the 0.8537 level, its Sept 07’2011 low. A violation of there will allow for more declines towards its psycho level at 0.8400 level and possibly lower toward its psycho level at 0.8300. Its weekly RSI is bearish and pointing lower suggesting further weakness. Alternatively, on any recovery higher, the 0.8706 level will come in as the initial resistance followed by the 0.8879 level, its Oct 17’2011 low. Further out, resistance stands at the 0.9081 level, its Oct 20’2011 high and ultimately, the 1.9316 level, its Oct’2011 high. All in all, the pair remains vulnerable to the downside on further downside weakness.
