0.8200 Area: Focus on Swiss Franc Gains Against US Dollar – UOB

0.8200 remains in focus in UOB’s 1–3 week USD/CHF outlook. Strategists Quek Ser Leang and Lee Sue Ann favour gradual Dollar weakness towards that level, provided prices remain below the revised strong resistance level. They note that a sharp fall followed by a rebound has left overall momentum muted and expect range-bound intraday trading. The longer-term outlook still leaves scope for a moderate recovery.

Dollar-Swiss faces resistance with scope for further weakness

"24-HOUR VIEW: We indicated yesterday that “the slight increase in upward momentum suggests USD could edge higher today, but any advance should stay within a 0.8240/0.8285 range.” The subsequent price movements did not unfold as expected. USD fell sharply, but briefly, to 0.8220 and then rebounded to close at 0.8246 (-0.23%). The price movements did not lead to any increase in downward momentum. Today, we expect USD to trade in a range, most likely between 0.8225 and 0.8270."

"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 on Monday (19 Oct, spot at 0.8240) that USD “could decline further to 0.8200.” Although USD has not been able to make much headway on the downside since then, we will continue to hold the same view as long as USD holds below 0.8290 (‘strong resistance’ level previously at 0.8300)."

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