With the pair failing to follow through higher on the back of its previous week gains to close lower on Friday, the risk of further declines is likely in the new week. In such a case, the 0.9063/75 level, its Nov 30'2011 low.50 Fib Ret (0.8558-0.9591 rally) will be targeted where a violation will extend weakness towards its psycho level at 0.9000. We may see a breather here due to the psychological nature of this support level but if taken out, expect more declines to build up towards the 0.8890 level, its Nov 03'2011 low. Its weekly RSI is bearish and pointing lower supporting this view. Alternatively, on any recovery, the pair will aim at the 0.9262 level, its Feb 06'2012 low followed by the 0.9374 level, its Jan 23'2012 high and possibly further higher towards the 0.9504 level, its Jan 13'2012 low. We expect respite to occur here and turn the pair back lower but if that fails, further declines could target its Jan 09'2012 high at 0.9591. On the whole, USDCHF remains biased to the downside on further weakness nearer term.

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