USD/CHF closed higher due to short covering on Wednesday but remains below the 20-day moving average crossing. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends Tuesday's decline, the 25% retracement level of the June-July rally crossing is the next downside target. Closes above last Thursday's high crossing are needed to renew the aforementioned rally.