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USD/CHF closed lower due to short covering on Monday as it consolidates some of this month's rally. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bullsih signalling that sideways to higher prices are possible near-term. If it extends this month's rally, the 38% retracement level of the June-December rally crossing is the next upside target. Closes below the 20-day moving average crossing would temper the near-term bullish outlook.