USDCHF: Having reversed its Tuesday gains to restart its corrective weakness on Wednesday, USDCHFlooks to break and hold below the its support zone at 0.8928/18.The zone was tested and held on wednesday and its eventual could create a deeper corrective weakness initially towards the 0.8810 level, its daily ema. Further down, support comes in at its Sept 15’2011 low at 0.8647 level with a break paving the way for a move further lower towards the 0.8574 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, for the pair to halt its present bear threats and resume its short term uptrend, it will have to break and close above the 1.9316 level, its Oct’2011 high. This if seen will set the stage for a move towards the 0.9340 level, its April 01’2011 high and possibly higher towards the 0.9400 level. All in all, the pair may be retaining its short term uptrend but now faces corrective weakness.
