United Overseas Bank’s (UOB) Quek Ser Leang notes USD/CHF closed firmer at 0.8265 after trading in a tight 0.8228–0.8270 band. Intraday, a slight uptick in momentum points to modest gains within 0.8240–0.8285. However, on a 1–3 week view, UOB still sees scope for a decline toward 0.8200, as long as the pair stays below strong resistance at 0.8300.
Dollar-Swiss rebound seen 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.)
