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USD/CHF closed higher due to light short covering on Wednesday but the low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are oversold, diverging but are neutral hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it resumes the decline off November's high, the 62% retracement level of the 2008-2009-rally crossing is the next downside target.