While downside vulnerability cannot be totally ruled out, the ability of USDCHF to maintain a second week of recovery suggests further upside risk could follow. This development now leaves the risk of a recapture of its key resistance at the 0.9299 level, its Feb 16'2012 high on the cards. Further out, the 0.9504 level, its Jan 13'2012 low and then the 0.9591 level will come in as the next upside targets. Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, the risk to our upside view will be for the pair to reverse its present bull pressure and then retarget the 0.8929 level, its Feb 24'2012 low. In such a case, the 0.8890 level, its Nov 03'2011 low will be aimed at where a breach will call for further declines towards the 0.8700 level, its psycho level. On the whole, the pair remains biased to the upside on correction but vulnerable.
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