USDCHF: Having reversed its previous week gains to close the week lower on Friday, the likely target resides at the 0.8890 level, its Nov 03’2011 low. This development has opened the door for more declines towards the 0.8700 level, its psycho level with a violation of there opening the door for further weakness towards the 0.8609 level and then the 0.8568 level. Its weekly RSI is bullish and pointing lower supporting this view. On any pullbacks, the 0.9091 level, its Feb 09’2012 low will be targeted. A reversal of roles as resistance is expected to occur at this level. However, if this fails to occur, the 0.9299 level, its Feb 16’2012 high will come in as the next upside target. Further out, the 0.9504 level, its Jan 13’2012 low and then the 0.9591 level will serve as the next upside target. On the whole, the pair remains biased to the downside on further weakness.
