Swiss Franc: Range-bound below 0.8320 versus US Dollar – UOB

With USD/CHF unable to break decisively through resistance, UOB strategists Quek Ser Leang and Lee Sue Ann see scope for consolidation over the next 24 hours. The pair reached 0.8313 before finishing lower at 0.8279. As momentum indicators flatten, the strategists expect trading to stay between 0.8265 and 0.8305. The price action over a 1–3 week horizon continues to suggest a possible test of 0.8320, although they see little chance of a sustained break above that level.

Can Dollar-Swiss break through nearby resistance?

"24-HOUR VIEW: While we expected USD to “edge higher” yesterday, we were of the view that “any advance is unlikely to reach the major resistance at 0.8320.” We noted that “support is at 0.8270.” Our view was not wrong, as USD rose to 0.8313, declined sharply to 0.8273 before closing at 0.8279 (-0.13%). Momentum indicators are turning flat, and USD has likely entered a range-trading phase between 0.8265 and 0.8305."

"1-3 WEEKS VIEW: On Tuesday (27 Oct, spot at 0.8270), we stated that “upward momentum is starting to build, and if USD closes above 0.8290, it could rise to 0.8320.” After USD closed at 0.8290, we highlighted yesterday (28 Oct, spot at 0.8290) that “while we would have preferred a more decisive close above 0.8290, the price action suggests USD could test 0.8320.” We also highlighted that “the odds of a continued rise above this level are not high for now.” We will continue to hold the same view as long as USD holds above 0.8250 (no change in ‘strong support’ level)."

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