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USD/CHF closed slightly lower due to short covering on Tuesday while extending July's trading range. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are diverging and are neutral signalling that sideways trading is possible near-term. Closes above the reaction high crossing would confirm that a short-term low has been posted. If it renews the decline off June's high, the 87% retracement level of the 2009-2010-rally crossing is the downside target.