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USD/CHF seen capped near 0.8305-0.8330 as franc weakens

UOB noted support at 0.8270 and 0.8255, warning that a break below 0.8255 would signal easing near-term upward pressure.

Reported · Written up by our desk · Major Pairs

UOB analysts Quek Ser Leang and Lee Sue Ann said USD/CHF has risen sharply over the past two days, with strong momentum suggesting further US dollar strength.

They added that deeply overbought conditions are likely to limit further gains, with upside seen capped around 0.8305 to 0.8330.

In the short term, the analysts pointed to support at 0.8270 and 0.8255, saying a breach of 0.8255 would indicate the immediate upward pressure has eased.

For the next one to three weeks, UOB revised its view from positive to neutral after the dollar moved above 0.8255, projecting USD/CHF could trade in a 0.8155 to 0.8255 range, while warning upside may be limited by overbought conditions.

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