Our outlook on USDCHF remains to the downside with eyes on the 0.8929 level, its Feb 24'2012 low. As long as the 0.9331 level remains as resistance, the pair's weakness started from the 0.9591 level remains intact. Further down, support comes in at the 0.8890 level, its Nov 03'2011 low where a breach will call for further declines towards the 0.8700 level, its psycho level. On the upside, the pair will have to return above the 0.9331 level to resume its recovery. This will open the door for a run at the 0.9504 level, its Jan 13'2012 low and then the 0.9591 level. On the whole, the pair remains biased to the downside below its key resistance.

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