UOB’s Quek Ser Leang highlights that USD/CHF extended gains to 0.8294 despite overbought conditions, with intraday scope for further upside though a move to the major 0.8320 resistance is seen unlikely. On a 1–3 week horizon, he now expects the pair to test 0.8320 after a close at 0.8290, but judges the odds of a sustained break above this level as low while strong support has shifted to 0.8250.

Swiss Franc under pressure as Dollar stays firm

“24-HOUR VIEW: On Monday, USD rose to a high of 0.8278. When it was at 0.8270 yesterday, we highlighted that “conditions are overbought after the sharp rise over the past two days, but there is scope for USD to test 0.8290.” We pointed out that “a sustained advance above this level is unlikely.” USD then rose to a high of 0.8294 before closing at 0.8290 (+0.23%). While downward momentum is starting to slow, and conditions remain overbought, the advance is not showing signs of pausing just yet. Today, USD could edge higher, but any advance is unlikely to reach the major resistance at 0.8320. On the downside, support is at 0.8270.”

“1-3 WEEKS VIEW: Two days ago (26 Oct, spot at 0.8250), we indicated that USD “has likely entered a range-trading phase between 0.8200 and 0.8290.” After USD rose to a high of 0.8278, we highlighted yesterday (27 Oct, spot at 0.8270) that “upward momentum is starting to build, and if USD closes above 0.8290, it could rise to 0.8320.” We added that “to sustain the momentum buildup, USD must not break below 0.8230 (‘strong support’ level).” USD then rose and closed at 0.8290. While we would have preferred a more decisive close above 0.8290, the price action suggests USD could test 0.8320. At this stage, the odds of a continued rise above this level are not high for now. The ‘strong support’ level is now at 0.8250 instead of 0.8230.”