Swiss Franc: Upside bias holds despite US Dollar rebound - UOB

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/CHF plunged to 0.8215 on Friday before rebounding to 0.8239, which has slowed immediate downside momentum. Intraday, the pair is expected to consolidate between 0.8220 and 0.8270. On a 1–3 week view, however, the bank still sees scope for additional Dollar weakness, with a potential move toward 0.8200 while strong resistance is now marked at 0.8300.

Dollar-Swiss retains bearish short term bias

"24-HOUR VIEW: We expected USD to “trade in a range between 0.8255 and 0.8310” last Friday. We were incorrect, as USD plunged to a low of 0.8215 before rebounding to close at 0.8239 (-0.34%). Downward momentum has slowed with the rebound, and USD is unlikely to weaken much further. Today, we expect USD to range-trade between 0.8220 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.” We also highlighted that “the odds of USD closing below 0.8245 will remain intact as long as it holds below the ‘strong resistance’ level, now at 0.8350.” We did not expect downward momentum to strengthen so quickly, as USD plummeted to a low of 0.8215 and closed at 0.8239 (-0.34%). From here, USD could decline further to 0.8200. On the upside, the ‘strong resistance’ is now at 0.8300."

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