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.
UOB strategists Quek Ser Leang and Lee Sue Ann have observed that USD/CHF has shifted higher towards 0.8147, maintaining overbought momentum indicative of potential testing at 0.8155 intraday. Looking ahead, a clear break and close above 0.8155 may extend gains up to 0.8175, while support is anticipated around 0.8085. Yesterday, UOB forecasted that USD could range between 0.8075 and 0.8115, overstating the high of 0.8147 reached during the NY session.
Despite being overbought, the rise in USD has the potential to test 0.8155 before settling. Should USD continue to rise above this level, it seems improbable. On the downside, a breach of 0.8105, with minor support at 0.8115, would likely lead to USD consolidating instead of testing 0.8155. On a 1-3 week outlook, it was previously predicted that USD would range from 0.8055 to 0.8155, beginning on Monday (07 Sep) when the spot rate was at 0.8100.
Recently (10 Sep, spot at 0.8100), UOB expressed continued expectations of range-trading, with a narrower range of 0.8060/0.8135 potentially restraining USD movements. Following this, USD surged to a high of 0.8147. Building momentum, if USD breaks and closes above 0.8155, it could further advance towards 0.8175. This upward movement will persist as long as USD maintains strength above the 'strong support' level at 0.8085.
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