The Week Ahead - USDCHF

USDCHF – Reverses Gains, Pressure Builds On The 0.9238 Level.

USDCHF: With USDCHF reversing almost all of its corrective recovery gains the past week, the big risk is for it to return to the 0.9238 level. If this occurs in the new week, further declines will shape up towards the 0.9193 level, its May 07’2012 low with breach targeting the 0.9100 level and ultimately the 0.9000 level, its big psycho level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, it will have to return above the 0. 9424 level to annul its current weakness and resume its bullish offensive towards its Sept 10’2012 high at 0.9482. A breach will open up further upside gain towards the 0.9606 level. On the whole, the pair remains biased to the downside in the short term.