USDCHF: The pair could be preparing for a deeper correction as its run to the upside was sharply rejected and saw a shooting star candle formation (weekly chart) at the end of the week. USDCHF could not survive a massive overhead resistance at the 1.0896 area, its former 2010 high established in Feb 2010. This area was a suspect before that attack and the pair's bounce off that area indicates its significance. This level is also layered with other rejection candles. Now the question is what happens now after a price failure is established and a shooting star candle is formed? One of two things may happen on the back of this negative technical development with the first being a follow through lower on the mentioned candle formation and second, another attempt on the upside targeting the candle pattern high at 1.0921 could occur. If the former plays out, which is what might likely happen, the pair will face downside pressure towards the 1.0700 level, its April'10 low followed by its April 20'10 low at 1.0602 and next the 1.0502 level, its April 14'10 low. Note that a break and hold below the 1.0434 level will confirm a top and trigger further declines. Alternatively, if the 1.0921 level is decisively violated, the pair will resume its broader medium term uptrend towards the 1.1020 level, its Jun 2009 high ahead of the 1.1910 level, its Mar 15'09 low. In a nutshell, having turned off higher prices and printed a shooting candle pattern, risk of further declines is likely.