With the pair closing slightly lower below the 0.8918 level, its Sept 29'2011 low following a sharp corrective weakness the past week, risk of continued downside pressure is likely in the new. This will leave USDCHF targeting further declines towards its Sept 15'2011 low at 0.8647 level. Below here if seen will pave the way for a move further lower towards the 0.8574 level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, the risk is for the pair to return above the 0.9316 level. This will set the stage for further the resumption of short uptrend towards towards the 0.9340 level, its April 01'2011 high and possibly higher towards the 0.9400 level. All in all, the pair remains biased to the downside on corrective weakness.

Weekly