USDCHF – The pair may have halted its weakness the past week to close higher but continues to maintain its broader downside bias.
Unless we see a follow through higher on the back of its past week gains, risk of returning to the 0.9130 level is a possibility with a violation aiming at the 0.9050 level.
Bears may come in here and turn USDCHF higher but if this fails to occur, expect further decline towards the 0.9000 levels. Its weekly RSI is bearish and pointing lower supporting this view.
Conversely, the pair will have to return above the 0.9496 level and then the 0.9750 level to annul its broader bearishness and then resume its corrective strength.
This if seen will target the 0.9838 level, its Jun 2013 high with a cut through here resuming its broader medium term bias. On the whole, the pair remains vulnerable to the downside in the medium term.
Guest post by FX Tech Strategy
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