Swiss Franc: Range consolidation persists against US Dollar – UOB

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/CHF has rebounded but still lacks strong upside momentum. In the near term, they see the Dollar trading in a slightly higher 0.8320/0.8355 band, while over the next 1–3 weeks they expect a narrower 0.8295/0.8365 range. On a 1–3 month horizon, they see continued rebound but not a retest of the July peak.

Dollar seen holding in tight range

"24-HOUR VIEW: We expected USD to “range-trade between 0.8290 and 0.8320” yesterday. The subsequent price movements did not unfold as expected. USD dipped to 0.8285 and then rose sharply, reaching a high of 0.8350. The sharp rise appears to be excessive, and USD is unlikely to rise much further. Today, we expect USD to trade in a higher range of 0.8320/0.8355."

"1-3 WEEKS VIEW: Our most recent narrative was from early this month (02 Oct, spot at 0.8310), when we highlighted that USD “has likely entered a range-trading phase between 0.8245 and 0.8365.” Yesterday, USD rose to a high of 0.8350. There has been a tentative buildup in upward momentum, but it is insufficient to indicate a sustained rise. We continue to expect range-trading but now expect a narrower range of 0.8295/0.8365. Looking ahead, should USD close above 0.8365, it would increase the risk of a break above 0.8385"

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