With the pair reversing g most of its past week gains to close marginally higher, the risk in the new week is for USDCHF to recapture the 0.9130 level.
A violation will aim at the 0.9050 level. Bears may come in here and turn USDCHF higher but if this fails to occur, expect further decline towards the 0.9000 levels.
Its weekly RSI is bearish and pointing lower supporting this view. Conversely, the pair will have to return above the 0.9412 level and then the 0.9750 level to annul its present bearishness and then resume its corrective strength.
This if seen will target the 0.9838 level, its Jun 2013 high with a cut through here resuming its broader medium term bias and opening the door for a move higher towards the 0.9900 level.
On the whole, the pair looks to extend its weakness in the new week.
Guest post by FX Tech Strategy
