USDCHF: The pair remains vulnerable to the downside towards the 1.0647 level, its Mar 03'10 and the 1.0607 level, its Feb 09'10 low as it continues to retain its corrective to consolidation tone. With a medium term uptrend set off from the 0.9910 level in Nov'09 halting at 1.0896 on Feb 19'10 and subsequently collapsing to a low of 1.0647 on Mar 03'10, further downside weakness is likely to retarget that level(1.0647) with a loss of there paving the way for a run at the 1.0607 level, its Feb 09'10 low. We expect a halt in price here to turn the pair back up again in line with its broader medium term uptrend but if that level snaps, further downside pressure should target its.50 Fib Ret(1.0129-1.0896 rally) at 1.0512. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, the pair must break and hold above the 1.0896 level to reverse the above view and then increase the risk of further upside gains towards its July 26'09 high at 1.0933 and next its July 21'09 high at 1.1021.On the whole, though biased to the upside in the medium term, corrective downside risk has been triggered suggesting lower level prices are likely to seen.

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