USDCHF: Sets Up For Further Bearish Momentum (Currency Focus)

[Mohammed Isah]

USDCHF: As highlighted in our weekly analysis, USDCHF continues to maintain its bearishness and looks to weaken further in the days ahead.The pair has been weakening since losing upside momentum at 1.1727 in May’2010 and with that trend still intact, the 0.7500 level and then the 0.7400 level, all representing its psycho levels are now beckoning. Its psycho levels as supports are necessary due to the absence of any visible support. On a violation of the 0.7400 level, its psycho level standing at 0.7300 will come in as the next downside target. Its daily is bearish and pointing lower suggesting further weakness. On any recovery, its Aug 02’2011 low at 0.7610 will be targeted with a turn above here aiming at its July 29’2011 low at 0.7850 and then its July 13’2011 low at 0.8079. We expect this level to reverse roles as resistance and turn the pair back down in the direction of its long term downtrend.