With USDCHF rallying through its key resistance level at the 0.8549 level, its June 16'2011 high to close the week higher, the pair has set the stage for a stronger bullish tone. This is coming on the back of its corrective recovery triggered off the 0.7068 level, its 2011 low and this has paved the way for further strength towards the 0.8892 level where its May 13'2011 high is located. A decisive break and hold above here will open up further upside risk towards its May 13'2011 high at 0.8946 and possibly its .50 Fib Ret (1.1727-0.7068 decline) at 0.9382.Its weekly RSI is bullish and pointing higher supporting this view. On the downside, pullback if seen will initially aim at the 0.8549 level, its June 16'2011 where a reversal of roles as support is expected to occur and turn the pair higher. However, a breach of here will set the stage for further declines towards its Aug 29'2011 high at 0.8240 and subsequently the 0.7710 level, marking its Sept 02'2011.All in all, having broken above its key resistance the past week, the pair looks to strengthen further in the new week.
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