USDCHF: A third week of upside gains has put the pair firmly above the 0.9424 level, suggesting further bullish pressure is likely to occur. With that said, USDCHF looks to target the 0.9550 level as long as it holds above the 0.9424 level. A breach of the 0.9550 level will open the door for more upside offensive towards the 0.9606 level. Its weekly RSI is bullish and pointing higher supporting this view. Alternatively, support comes in at the 0.9424 level where a reversal of roles is likely to occur and turn USDCHF higher. However, if this fails to occur, a run at the 0.9275 level will follow where a decisive break will set the stage for a move lower towards the 0.9193 level, its May 07’2012 low. On the whole, the pair remains biased to the downside in the medium term.
