USDCHF –Weak, Vulnerable On Further Declines

USDCHF: With the pair breaking and holding below the 0.9238 level, further downside is likely in the days ahead. Further weakness should build up towards the 0.9193 level, its May 07’2012 low where a breach will aim at the 0.9100 level and ultimately the 0.9000 level, its big psycho level. Its daily RSI is bearish and pointing lower suggesting further declines. On the upside, the pair will have to return above 0.9274 level and the 0.9374 levels to end its present bearishness and then turn attention to the 0.9424 level. Above here will resume its short term uptrend now on hold towards its Sept 10'2012 high at 0.9482 followed by the 0.9606 level. On the whole, the pair remains biased to the downside in the medium term.