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USD/CHF closed sharply higher on Wednesday as it consolidates some of the decline off June's high. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are diverging and are turning neutral hinting that a short-term low might be in or is near.

Closes above last Tuesday's high crossing would confirm that a short-term low has been posted. If it extends the decline off June's high, the 75% retracement level of the 2009-2010-rally crossing is the next upside target.