USD/CHF closed higher due to profit taking on Monday as it consolidated some of this month's decline. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought and are turning neutral to bullish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted. If it extends this month's decline, the 38% retracement level of the 2009-2010-rally crossing is the next downside target.
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