USDCHF: The pair has backed off higher prices following its three-day rally and now faces bear threats. However, we see the risk of a return to the upside on ending present threats and then targeting its key resistance at the 0.9081 level (Oct 20’2011 high). However, the bigger resistance stands at the 1.9316 level, its Oct’2011 high where a break will annul its entire correction and bring further strength towards the 0.9400 level, its psycho level. A breach of here will create scope for further upside towards the 0.9503 level, its Feb 22’2011 high. Its daily RSI is bullish and pointing higher supporting this view. Alternatively, the risk to our analysis will be a return below the 0.8568 level, its Oct 27’2011 low with a violation o f there allowing for further declines towards its psycho level at 0.8400 level. All in all, the pair looks to recover higher.
