USDCHF – With USDCHF rallying strongly on correction the past week, a follow through higher is envisaged in the new week. In such a case, watch out for the 0.9177 level, a level that must be violated for continued recovery to occur. Further out, resistance resides at the 0.9278 level followed by the 0.9454 level. A cut through here will pave the way for a run at the 0.9496 level where a breach will set the stage for a run at the 0.9750 level. Its weekly RSI is bullish and pointing higher supporting this view. Conversely, a failure to follow through higher on its past week recovery will mean a return to the 0.8889 level where a violation will aim at the 0.8800 level. A turn below here will shift attention to the 0.8750 level followed by the 0.8700 level. On the whole, the pair remains biased to the downside in the medium term despite its recovery attempts.
