Swiss Franc: Gains in focus against US Dollar near 0.8200 – UOB

UOB strategists Quek Ser Leang and Lee Sue Ann observe that USD/CHF fell sharply before rebounding, leaving overall momentum subdued. They expect intraday trading to remain range-bound, but their 1–3 week view still favours gradual Dollar weakness toward 0.8200, as long as prices stay below a revised strong resistance level, while the longer-term outlook allows for a moderate rebound.

Dollar-Swiss capped with room to ease

"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)."