USDCHF: The pair remains vulnerable to the downside as it closed lower reversing its two-week gains the past week. This is coming on the back of a price failure at the 0.9334 level and with bearish momentum remaining intact, further weakness is likely to occur towards the 0.9000 level, its psycho level with a violation of there turning attention to the 0.8929 level, its Feb 24’2012 low. Further down, the 0.8890 level, its Nov 03’2011 low comes in as the next target where a breach will call for further declines towards the 0.8700 level, its psycho level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, the pair will have to return above the 0.9334 level, its Mar 15’2012 high to resume its recovery. This will pave the way for a run at the 0.9504 level, its Jan 13’2012 low and subsequently the 0.9591 level. On the whole, the pair remains biased to the downside with eyes on the 0.9000/0/8929 levels.
