We retain our long-term bearish call on USDCHF as we look for it to weaken further in the face of its past week bearish momentum. This leaves the pair targeting the 0.9200 level initially with a violation of that level setting the stage for further weakness towards the 0.9100 and then the 0.9000 level, all representing its psycho levels. Conversely, the risk to this analysis is an oversold condition now seen on the daily chart, a situation which could trigger a corrective recovery. If that occurs, we expect a push higher towards its Feb 02'2011 low at 0.9327 where a reversal of roles as resistance is likely to occur and turn the pair back down. Further out, the 0.9503 level, representing its Feb 2011 high will be targeted with a breach extending more gains towards its Feb 11'2011 high. All in all, the pair remains vulnerable to the downside but faces the risk of a correction due to oversold condition.

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