USDCHF- Remains In Consolidation Mode

USDCHF: With the pair closing marginally higher on the back of its previous week higher close, the risk is for a follow through to occur. However, USDCHF is trapped in a consolidation. In order for it to force further upside offensive, it will have to overcome the 0.9424 level. Above here will resume its short term uptrend now on hold towards its Sept 10’2012 high at 0.9482 followed by the 0.9606 level. Its weekly RSI is bullish and pointing higher supporting this view. Alternatively, as long as the pair remains below the 0.9424 level, there is risk of a return to the 0.9213 level. A decisive break of here will set the stage for a move lower towards the 0.9193 level, its May 07’2012 low where a breach will aim at the 0.9100 level and ultimately the 0.9000 level, its big psycho level. On the whole, the pair remains biased to the downside in the medium term despite its corrective attempts.