While price reversal saw USDCHF turning higher the past week, it still faces downside vulnerability. This suggests its weakness started from the 0.9591 level is not over yet. On ending its present correction it should return to the 0.8929 level, its Feb 24'2012 low. 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 0.9334 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 on further price failure.

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