Swiss Franc: Pullback leaves room for gains against US Dollar – UOB

USD/CHF closed higher at 0.8265. United Overseas Bank’s (UOB) Quek Ser Leang notes that the pair traded in a narrow 0.8228–0.8270 range. A small improvement in intraday momentum suggests limited upside within 0.8240–0.8285. Over 1–3 weeks, however, UOB continues to see potential for a fall towards 0.8200, provided the pair remains below strong resistance at 0.8300.

USD/CHF rebound viewed as corrective

"24-HOUR VIEW: Yesterday, we expected USD “to range-trade between 0.8220 and 0.8270.” USD then traded within a narrower range of 0.8228/0.8270 before closing on a firm note at 0.8265 (+0.32%). The slight increase in upward momentum suggests USD could edge higher today, but any advance should stay within a 0.8240/0.8285 range."

"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 yesterday (19 Oct, spot at 0.8240) that USD “could decline further to 0.8200.” We will continue to hold the same view as long as USD holds below 0.8300 (no change in ‘strong resistance’ level)."

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