Swiss Franc: Attention centres on 0.8110 against US Dollar - UOB

USD/CHF is expected to remain rangebound following a steep decline and subsequent rebound, as momentum indicators show little direction, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann. Their projected range for the next 24 hours is 0.8125 to 0.8185. Over the next 1–3 weeks, a move down towards 0.8110 remains possible before the risk of a recovery rises, with 0.8205 limiting the upside.

Will consolidation continue 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.)