USDCHF: Follows Through Lower, Set To Extend Weakness.
USDCHF: With a follow-through on the back of its previous week losses occurring at the end of the week, further downside is expected. As long as USDCHF trades and holds below the 0.9156/0.9079 levels this view remains valid. Minimum support lies at the 0.8902 level, its Jan 24 2014 low where a violation will push the pair further lower towards the 0.8850 level. A cut through here will pave the way for a run at the 0.8800 level, its psycho level. Its weekly RSI is bearish and pointing lower supporting this view. Conversely, to reduce its downside pressure, the pair will have to overcome its resistance residing at the 0.9033 level, its Feb 12 2014 high followed by the 0.9100 level and next the 0.9156 level, its Jan 21 2014 high. Further out, resistance resides at the 0.9200 level, its psycho. All in all, the pair remains biased to the downside in the medium term.
Article by www.fxtechstrategy.com