USDCHF: Weakens, Eyes A Return To 0.8553

USDCHF: With continued downside pressure seen, USDCHF now looks to weaken further possibly towards the 0.9553 level, its 2011 low.This is coming on the back of a second week of downside pressure following its loss of upside momentum at the 0.8946 level, its May 13’2011 high.

On continued weakness, the 0.8500 level, its psycho level will be targeted with a violation of that level setting the stage for further declines towards the 0.8400 and 0.8300 levels, all representing its psycho levels. Its daily RSI is bearish and pointing lower suggesting further weakness.

Alternatively, the risk to this analysis will be a return above the 0.8946 level, its May 13’2011 high. Further out, resistance comes in at the 0.9013 level, its April 19’2011 high and possibly higher towards its April 11 2011 high at 0.9104. All in all, USDCHF remains vulnerable to the downside in the long term with its present price action supporting that theme.