USDCHF: With a follow-through lower on the back of its last week losses seeing USDCHF reversing its Friday gains, risk of further decline is expected. In such a case, the 0.9240 level, its Dec 21’2011 low will be targeted where a clearance will turn focus to the 0.9175 level, its Dec 08’2011 low. A halt may occur here and turn the pair back up but if that level breaks, lower level prices could shape up towards the 0.9063 level, its Nov 30’2011 low. Its daily and weekly RSI are bearish and pointing higher supporting this view. Alternatively, on any recovery, the pair will target the 0.9504 level, its Jan 13’2012 low with a loss of there turning risk towards the 0.9591 level. Above here is required to resume its medium term uptrend and shift attention to the 0.9772 level, its Feb 11’2011 high. Further out, a violation of there will allow the pair to strengthen further towards the 0.9913 level, its Dec 07’2010 high followed by its psycho level at 1.0000 level. On the whole, the risk remains biased to the downside on further correction.
