A 2nd down week in succession was posted last week but the real story was the weakness of rally attempts. The topside was easily capped by the 13/200 day moving averages with the week finishing with increased selling pressure that took USD/CHF to the most negative levels traded for 6 weeks and through the 13 week average.
In addition, strength indicators (RSI) are negative and so while there is potential for intraday profit taking rallies we look for these to be temporary/limited and for this gradual deterioration to deepen this week with potential to .8862, .8825 or even .8776.
