Will the Swiss Franc trade in a range against the US Dollar? – UOB

Range-bound trading has replaced the earlier negative bias in USD/CHF, according to United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann. With the Dollar’s swift recovery running out of steam below key resistance, intraday support levels frame the near-term risks. The analysts anticipate consolidation within 0.8200–0.8290 over the next 1–3 weeks.

Can the Dollar rebound break through resistance?

"24-HOUR VIEW: USD declined to a low of 0.8190 last Thursday. When it was at 0.8200 on Friday, we highlighted the following: “Downward momentum is increasing, albeit not significantly. However, there is scope for USD to decline to 0.8180. To keep the momentum going, USD must hold below 0.8230.” The subsequent price movements did not unfold as expected. USD dipped to 0.8188 and then rose sharply to a high of 0.8255. The rapid rise could extend, but a clear break above 0.8265 appears unlikely. Support is at 0.8235; a breach of 0.8220 would indicate that the immediate upward pressure has eased."

"1-3 WEEKS VIEW: Following our negative USD view from the middle of the month, we highlighted last Friday (23 Oct, spot at 0.8200) that “while USD could continue to decline, given that there has been no significant increase in downward momentum, it remains to be seen whether 0.8140 is within reach.” We did not expect USD to rebound and break above our ‘strong resistance’ level at 0.8250. The breach of our ‘strong resistance’ level indicates that downward momentum has faded. USD has likely entered a rangetrading phase, and it is likely to trade between 0.8200 and 0.8290."

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