USD/CHF tested the key low at 0.9022 (01/02/2013 low) last Friday. A break under this key low will open up a swift return to the region near 0.8568 (27/10/2011 low). For this reason the region between current trade and 0.8568 is deemed to be a reasonable zone for long entry.

In the longer term, a sideways move between the key supports at 0.9022 (01/02/2013 low) and 0.8931 (24/02/2012 low) and the key resistances at 0.9972 (24/07/2012 high) and 1.0067 (01/12/2010 high) is also possible. Therefore, the medium-term downside risk seems limited.

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