Swiss Franc: UOB Expects Further Losses Against US Dollar

USD/CHF reached 0.8294 despite overbought conditions, according to UOB’s Quek Ser Leang, who sees room for further intraday gains but considers a move to major resistance at 0.8320 unlikely. Following the close at 0.8290, he now expects a test of 0.8320 over the next 1–3 weeks, although he regards the likelihood of a sustained break above that level as low. Strong support has moved to 0.8250.

Firm Dollar keeps Swiss Franc under pressure

"24-HOUR VIEW: On Monday, USD rose to a high of 0.8278. When it was at 0.8270 yesterday, we highlighted that “conditions are overbought after the sharp rise over the past two days, but there is scope for USD to test 0.8290.” We pointed out that “a sustained advance above this level is unlikely.” USD then rose to a high of 0.8294 before closing at 0.8290 (+0.23%). While downward momentum is starting to slow, and conditions remain overbought, the advance is not showing signs of pausing just yet. Today, USD could edge higher, but any advance is unlikely to reach the major resistance at 0.8320. On the downside, support is at 0.8270."

"1-3 WEEKS VIEW: Two days ago (26 Oct, spot at 0.8250), we indicated that USD “has likely entered a range-trading phase between 0.8200 and 0.8290.” After USD rose to a high of 0.8278, we highlighted yesterday (27 Oct, spot at 0.8270) that “upward momentum is starting to build, and if USD closes above 0.8290, it could rise to 0.8320.” We added that “to sustain the momentum buildup, USD must not break below 0.8230 (‘strong support’ level).” USD then rose and closed at 0.8290. While we would have preferred a more decisive close above 0.8290, the price action suggests USD could test 0.8320. At this stage, the odds of a continued rise above this level are not high for now. The ‘strong support’ level is now at 0.8250 instead of 0.8230."

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