0.8110 stays in focus for Swiss Franc versus US Dollar - UOB

USD/CHF is expected to stay between 0.8125 and 0.8185 over the next 24 hours. United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann anticipate consolidation following a sharp decline and rebound, as momentum indicators remain flat. Over the next 1–3 weeks, a dip towards 0.8110 remains possible before the risk of a recovery increases. The topside remains capped at 0.8205.

0.8110 remains possible amid consolidation near recent lows

"24-HOUR VIEW: On Wednesday, USD fell more than we expected to 0.8124 and then rebounded strongly. Yesterday, we highlighted that “downward momentum has slowed with the rebound, and USD is unlikely to weaken further.” We expected USD “to consolidate between 0.8125 and 0.8185.” Our assessments were not wrong, even though USD traded within a slightly narrower range of 0.8130/0.8185, closing largely unchanged at 0.8165 (-0.04%). Momentum indicators remain flat, and we continue to expect USD to trade between 0.8125 and 0.8185."

"1-3 WEEKS VIEW: Our update from yesterday (05 Nov, spot at 0.8165) remains valid. As highlighted, “there is a chance for USD to test 0.8110 before the risk of a recovery increases.” On the upside, a breach of 0.8205 (no change in ‘strong resistance’) would mean that the USD decline from one week ago has run its course."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)