Swiss Franc: Range bias holds below resistance against US Dollar – UOB

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann see USD/CHF trading with a mild downside bias in the short term, targeting support near 0.8190 while keeping 0.8155 intact. Over the next one to three weeks, they expect a range between 0.8155 and 0.8255 as prior upside momentum has faded. On a one- to three-month horizon, they still see scope for a rebound, but not a retest of the July peak.

Downside bias within defined range

"24-HOUR VIEW: Yesterday, USD traded between 0.8198 and 0.8238, closing lower by 0.11% at 0.8209. The slight increase in downward momentum suggests USD is likely to trade with a downside bias toward 0.8190. The next support at 0.8155 is not expected to come under threat. Resistance is at 0.8225, followed by 0.8235."

"1-3 WEEKS VIEW: We turned positive on USD one week ago. After USD soared to 0.8265, we highlighted last Thursday (17 Sep, spot at 0.8250) that “while momentum remains strong, it is too early to tell whether it is sufficient for USD to break above 0.8300.” USD subsequently eased from the high, and while our ‘strong support’ level at 0.8185 has not been breached yet, upward momentum has largely ended. USD has likely entered a range-trading phase. For the time being, USD is likely to trade between 0.8155 and 0.8255."

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