USDCHF: With the pair strengthening for second day and now testing its minor resistance at the 0.9468 level, further upside risk is expected. This will expose its key resistance at the 0.9548 level where a breach will target the 0.9772 level, its Feb 11’2011 high. Above here if seen will resume broader uptrend and extend bull pressure towards the 0.9913 level, its Dec 07’2010 high. Its daily RSI is bullish and pointing higher supporting this view. Alternatively, on a return below the 0.9246 level, USDCHF will resume its weakness towards the 0.9175 level. A halt is likely to occur here and turn the pair back up but if that level snaps, lower level prices will shape up towards the 0.9063 level, its Nov 30’2011 low and next the 0.8954 level, its Nov 11’11 low. All in all, the pair remains biased to the downside on corrective weakness.
