Swiss Franc: Focus Stays on 0.8110 Against US Dollar - UOB

A range of 0.8125 to 0.8185 is expected for USD/CHF over the next 24 hours, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann. Following a steep decline and subsequent rebound, they see the pair consolidating as momentum indicators remain flat. Over the next 1–3 weeks, a move down towards 0.8110 remains possible before the risk of a recovery increases, with upside capped at 0.8205.

USD/CHF holds in 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 produced with the assistance of an Artificial Intelligence tool and checked by an editor. Find out more.)