USD/CHF: With USD/CHF rallying to take out its key resistance at the 0.9000 level, it now faces the risk of further strength in the new week. Resistance resides at the 0.9109 level, its Dec 02’2013 high where a violation if seen will pave the way for a run at the 0.9149 level, its Nov 22 2013 high.
Further out, upside object stands at the 0.9191 level, representing its Nov 20 2013 high. Its weekly RSI is bullish and pointing higher suggesting further strength. On the downside, support comes in at the 0.9000 level where we expect a reversal of roles as support to occur and turn the pair higher.
However, if this level is taken out, expect further decline to occur towards the 0.8950 level where a break will open the door for more decline to occur towards the 0.8900 level. Price extension below here if seen will set the stage for a run at the 0.8850 level.
All in all, the pair remains biased to the upside in the short term.
Guest post by FX Tech Strategy
