Swiss Franc: Downtrend eyes 0.8155–0.8175 zone against US Dollar – UOB

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/CHF has broken higher toward 0.8147, with overbought but still constructive momentum suggesting scope to test 0.8155 intraday. On a one-to-three-week view, a clear break and close above 0.8155 could extend gains toward 0.8175, while support is seen around 0.8085.

Overbought but still room to climb

"24-HOUR VIEW: Yesterday, we indicated that USD “could trade between 0.8075 and 0.8115.” We did not expect USD to soar to a high of 0.8147 during the NY session. While overbought, the advance in USD has scope to test 0.8155 before levelling off. A sustained rise above this level appears unlikely. On the downside, a breach of 0.8105 (minor support is at 0.8115) would mean that USD is likely to consolidate rather than test 0.8155."

"1-3 WEEKS VIEW: On Monday (07 Sep, spot at 0.8100), we highlighted that, for the time being, we expect USD to trade in a range between 0.8055 and 0.8155. Yesterday (10 Sep, spot at 0.8100), we stated that “we continue to expect range-trading, but a narrower range of 0.8060/0.8135 is likely enough to contain the price movements in USD for now.” USD subsequently rose to a high of 0.8147. Upward momentum is starting to build, and if USD breaks and closes above 0.8155, it could continue to rise toward 0.8175. The odds of USD breaking clearly above 0.8155 will remain intact as long as USD holds above the ‘strong support’ level, now at 0.8085."

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