A sharp sell off has seen the pair resuming its long term downtrend and opening the door for further weakness in the days ahead. With that said, the 0.7800 level comes in as the immediate downside objective with a cut through that level allowing for more declines towards the 0.7700 level and then the 0.7600 level, all representing its psycho levels. The use of its psycho levels as supports is necessary due to the absence of any visible support. Its weekly and monthly RSI are bearish and pointing lower suggesting further weakness. On any recovery, its July 13'2011 low at 0.8079 will come in as resistance where a reversal of roles is expected to turn the pair lower. Other resistance levels above the 0.8079 level are located at the 0.8524 level, its July 01'2011 high and the 0.8892 level, its May 24'2011 low. All in all, USDCHF remains vulnerable to the downside in the long term as it looks to weaken further in the days ahead.
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