Swiss Franc: Range-bound trading outlook against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann see USD/CHF stuck in tight ranges across timeframes. Intraday, they expect the US Dollar (USD) to hold between 0.8185 and 0.8230 as prior downside momentum has faded. Over 1–3 weeks, their view remains for consolidation between 0.8155 and 0.8255, while over 1–3 months they still see scope for a rebound but not a retest of the July peak.

Dollar seen consolidating in defined bands

"24-HOUR VIEW: Following Monday’s price action, we indicated yesterday that “the slight increase in downward momentum suggests USD is likely to trade with a downside bias toward 0.8190.” We also indicated that “the next support at 0.8155 is not expected to come under threat.” We were not wrong, as USD dipped to 0.8181, rebounding to close little changed at 0.8205 (-0.05%). The downside bias has faded, and today, we expect USD to trade in a range, most likely between 0.8185 and 0.8230."

"1-3 WEEKS VIEW: After holding a positive USD view since early last week, we highlighted (18 Sep, spot at 0.8210) that “upward momentum has largely ended.” We indicated that “for the time being, USD is likely to trade between 0.8155 and 0.8255.” Our view remains unchanged."

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

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