With USDCHF breaking and holding below key support at the 0.8928/18 zone to close the week lower, further price extension is expected towards the 0.8706 level in new week. The pair has been under intense bear pressure since losing upside momentum at the 1.9316 level, its Oct'2011 high and its subsequent correction. A convincing violation of the 0.8706 level will pave the way for a run at its Sept 15'2011 low at 0.8647 where a break will aim at the 0.8537 level, its Sept 07'2011 low. Its weekly RSI is bearish and pointing lower supporting this view. Alternatively, for the pair restart its short term uptrend now on hold, a break and close above the 1.9316 level, its Oct'2011 high is required. This if seen will open the door further bullish offensive towards the 0.9400 level, its psycho level with a breach of here creating scope for further upside towards the 0.9503 level, its Feb 22'2011 high. Further out, resistance comes in at the 0.9772 level, its Feb 11'2011 high. All in all, the pair remains vulnerable to the downside on further correction.

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