Swiss Franc: Upside against US Dollar near 0.8200 comes into focus – UOB

A sharp fall followed by a recovery has left USD/CHF with subdued overall momentum, according to UOB strategists Quek Ser Leang and Lee Sue Ann. Although they anticipate range-bound intraday trading, they retain a 1–3 week bias towards gradual Dollar weakness towards 0.8200, provided the pair remains below a revised strong resistance level. Further out, their outlook leaves scope for a moderate rebound.

Dollar-Swiss Faces Resistance as Further Easing Remains Possible

"24-HOUR VIEW: We indicated yesterday that “the slight increase in upward momentum suggests USD could edge higher today, but any advance should stay within a 0.8240/0.8285 range.” The subsequent price movements did not unfold as expected. USD fell sharply, but briefly, to 0.8220 and then rebounded to close at 0.8246 (-0.23%). The price movements did not lead to any increase in downward momentum. Today, we expect USD to trade in a range, most likely between 0.8225 and 0.8270."

"1-3 WEEKS VIEW: Last Friday (16 Oct, spot at 0.8280), we highlighted that “downward momentum is building and if USD closes below 0.8245, it could decline toward 0.8225.” After USD subsequently fell to a low of 0.8215, we highlighted on Monday (19 Oct, spot at 0.8240) that USD “could decline further to 0.8200.” Although USD has not been able to make much headway on the downside since then, we will continue to hold the same view as long as USD holds below 0.8290 (‘strong resistance’ level previously at 0.8300)."

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