Swiss Franc: Downtrend capped with 0.8185 against US Dollar – UOB

UOB strategist Quek Ser Leang notes USD/CHF extended gains to 0.8170 and closed at 0.8161, with conditions overbought but momentum still strong. Intraday, the pair could test 0.8185, though 0.8205 is seen as a tough barrier. On a 1–3 week view, upward momentum is building, but it is unclear if it is sufficient for a move to 0.8205, with strong support now at 0.8110.

Overbought rally eyeing 0.8185

"24-HOUR VIEW: USD soared to a high of 0.8147 last Thursday. On Friday, we highlighted that “while overbought, the advance in USD has scope to test 0.8155 before levelling off.” We also highlighted that “a sustained rise above this level appears unlikely.” We underestimated the upward momentum, as USD rose more than expected to 0.8170 before closing on a firm note at 0.8161 (+0.44%). Conditions remain overbought, but strong upward momentum suggests USD could test 0.8185 today. Any further advance is highly unlikely to reach the significant resistance at 0.8205. To keep the momentum going, USD must hold above 0.8140, with minor support at 0.8150."

"1-3 WEEKS VIEW: The following are excerpts from our update last Friday (11 Sep, spot at 0.8130): “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.” USD then rose to 0.8170 and closed at 0.8161 (+0.44%). While upward momentum continues to build, it is currently unclear whether it is sufficient for USD to rise to the significant resistance at 0.8205. On the downside, the ‘strong support’ level is now at 0.8110."

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