USDCHF – Extends Corrective Recovery
USDCHF: The pair managed to close higher for a second week in a row at the end of the week, suggesting we could see further correction. If this occurs, further upside risk could build up towards its Sept 10'2012 high at 0.9482 where a breach will open up further upside gain towards the 0.9606 level. Its weekly RSI has turned higher suggesting further strength. On the down, if its current recovery fails especially ahead of the 0.9421/82 levels, its short term downtrend could be triggered. Support lies at the 92.38 level where a violation will aim at the 0.9193 level, its May 07’2012 low followed by the 0.9100 level. A breach of here will turn focus to its major psycho level at the 0.9000 level. On the whole, the pair remains biased to the downside in the short term despite its recovery attempts.