USDCHF: While USDCHF 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. This suggests its present attempt on the upside is corrective and should fade thus returning to its Jan 27’2012 low at 0.9114 with a violation of there shifting focus to the 0.9063/75 level, its Nov 30’2011 low.50 Fib Ret (0.8558-0.9591 rally). A clearance of here will extend price weakness towards its psycho level at 0.9000. We may see a breather here due to the psychological importance of this support level but if taken out, expect more declines to build up towards the 0.8890 level, its Nov 03’2011 low. Its weekly RSI is bearish and pointing lower supporting this view. Alternatively, on any recovery, the pair will aim at the 0.9339 level, its Jan 25’2012 low followed by the 0.9405 level, its Jan 13’2012 low. A reversal of roles as resistance is likely to occur here and turn it back down. However, if this fails to hold, the pair could strengthen further towards the 0.9504 level, its Jan 13’2012 low and ultimately the 0.9591 level. On the whole, the pair remains biased to the downside nearer term.
