USDCHF: Sees Bearish Momentum, Targets The 0.8859 Level
USDCHF: With the pair declining sharply to reverse its previous week gains the past week, it now looks to extend that weakness in the new week. While holding below the 0.8986 level, the above view remains valid. This development has paved the way for a run at the 0.8900 level, its psycho level. Further down, support comes in at the 0.8859 level, its Dec 30 2013 low with a cut through here turning focus to the 00.8800 level. A turn below here will set the stage for a push lower towards the 0.8750 level. Its weekly RSI is bearish and pointing lower suggesting further downside. Conversely, to annul its present weakness and resume its short term uptrend now on hold, the pair must break and hold above the 0.9156 level, its Jan 21 2014 high, a tough call at its current price levels. Further out, resistance resides at the 0.9200 level, its psycho where a violation will aim at the 0.9249 level, its Nov 07’2013 high and then the 0.9300 level. All in all, the pair remains biased to the downside on further bear threats.
