Swiss Franc expected to trade in a range against US Dollar – UOB

A consolidation range of 0.8200 to 0.8290 is expected for USD/CHF over the next 1–3 weeks, according to United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann. Their previously negative bias has given way to a range-trading outlook. In their assessment, the dollar’s sharp recovery is running out of momentum below key resistance, while intraday support levels frame the near-term risks.

Dollar recovery loses momentum below key resistance

"24-HOUR VIEW: USD declined to a low of 0.8190 last Thursday. When it was at 0.8200 on Friday, we highlighted the following: “Downward momentum is increasing, albeit not significantly. However, there is scope for USD to decline to 0.8180. To keep the momentum going, USD must hold below 0.8230.” The subsequent price movements did not unfold as expected. USD dipped to 0.8188 and then rose sharply to a high of 0.8255. The rapid rise could extend, but a clear break above 0.8265 appears unlikely. Support is at 0.8235; a breach of 0.8220 would indicate that the immediate upward pressure has eased."

"1-3 WEEKS VIEW: Following our negative USD view from the middle of the month, we highlighted last Friday (23 Oct, spot at 0.8200) that “while USD could continue to decline, given that there has been no significant increase in downward momentum, it remains to be seen whether 0.8140 is within reach.” We did not expect USD to rebound and break above our ‘strong resistance’ level at 0.8250. The breach of our ‘strong resistance’ level indicates that downward momentum has faded. USD has likely entered a rangetrading phase, and it is likely to trade between 0.8200 and 0.8290."

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