The USDCHF was corrected lower yesterday, bottomed at 1.0552 and closed at 1.0561. I think this is a normal correction and as long as price stay above 1.0507 I still prefer a bullish scenario with 1.0700 as nearest target. Break below 1.0507 should trigger further bearish momentum testing 1.0350 area. As you can see on daily chart below, the bullish channel indicating a bullish scenario but at this phase we have a lot of “room” in the channel for downside correction so this can be a tricky phase for this pair.

The EURUSD had a significant bearish movement this week, fell below 1.4000 key support level and bottomed at 1.3862. On daily chart below we have a nice bearish channel indicating valid bearish trend which has started since December 2009. I am expecting bearish continuation next week. Initial support is seen around 1.3800 – 1.3750 area (50% Fibo retracement of 1.2457 – 1.5144). Break below that area should trigger further bearish momentum targeting 1.3490 area (61.8% Fibo retracement of 1.2457 – 1.5144). On the upside, immediate resistance at 1.4000/30 followed by 1.4126/50 area.