USDCHF: Susceptible To The Downside On Price Failure.

[FXTechstrategy Team]

USDCHF: The pair is now on a second day of downside weakness after it backed off higher prices on Tuesday. Despite this, USDCHF remains biased to the upside in the medium term. While the pair holds above its key support at the 0.9240 level, its Dec 21’2011 low, we look for it to return to the 0.9548/91 levels. An eventual clearance of that zone will resume its medium term uptrend and aim at the 0.9772 level, its Feb 11’2011 high with a violation of there allowing the pair to aim at the 0.9913 level, its Dec 07’2010 high. Further out, its psycho level at 1.0000 level will come in as the next upside target. Alternatively, support lies at 0.9301 level followed by the 0.9240 level, its Dec 21’2011 low where a breach if seen will push the pair further lower towards the 0.9175 level, its Dec 08’2011 low. A halt is likely to occur here and turn the pair back up but if that level breaks, lower level prices could shape up towards the 0.9063 level, its Nov 30’2011 low. All in all, the pair remains biased to the upside medium term though presently facing bear threats.