With USDCHF declining for a second week in a row following a reversal of its recent recovery, more downside pressure is expected.
While the pair holds below the 0.9146 level, the next downside target is the 0.9050 level with a breach aiming at the 0.9000 level.
Further down, support lies at the 0.8950 level with a turn below here leaving the pair targeting the 0.8900 level. Its weekly RSI is bearish and pointing lower supporting this view.
On the other hand, the alternative scenario will be for the pair to retake the 0.9278 level followed by the 0.9454 level.
Further out, resistance resides at the 0.9496 level with a break paving the way for a run at the 0.9750 level and subsequently the 0.9838 level, its Jun 2013 high. On the whole, the pair remains biased to the downside on further bearishness.
Guest post by FX Tech Strategy
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