Swiss Franc: Is there scope for gains against US Dollar despite pullback? – UOB

Modest intraday gains appear possible for USD/CHF, although United Overseas Bank’s (UOB) Quek Ser Leang continues to see downside potential over 1–3 weeks. The pair finished higher at 0.8265 following a narrow trading range of 0.8228–0.8270. A marginal improvement in momentum suggests limited upside within 0.8240–0.8285 during the day. Over the longer horizon, however, UOB sees room for a fall towards 0.8200, provided strong resistance at 0.8300 remains intact.

Is the Dollar-Swiss recovery merely 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.)