United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann note that USD/CHF has shifted from a prior negative bias into a range-trading phase. They see the Dollar’s rapid rebound losing momentum below key resistance, with intraday support levels defining near-term risks. Over the 1–3 week horizon, they expect consolidation between 0.8200 and 0.8290.

Dollar rebound capped below resistance

“24-HOUR VIEW: USD declined to a low of 0.8190 last Thursday. When it was at 0.8200 on Friday, we highlighted the following: “Downward momentum is increasing, albeit not significantly. However, there is scope for USD to decline to 0.8180. To keep the momentum going, USD must hold below 0.8230.” The subsequent price movements did not unfold as expected. USD dipped to 0.8188 and then rose sharply to a high of 0.8255. The rapid rise could extend, but a clear break above 0.8265 appears unlikely. Support is at 0.8235; a breach of 0.8220 would indicate that the immediate upward pressure has eased.”

“1-3 WEEKS VIEW: Following our negative USD view from the middle of the month, we highlighted last Friday (23 Oct, spot at 0.8200) that “while USD could continue to decline, given that there has been no significant increase in downward momentum, it remains to be seen whether 0.8140 is within reach.” We did not expect USD to rebound and break above our ‘strong resistance’ level at 0.8250. The breach of our ‘strong resistance’ level indicates that downward momentum has faded. USD has likely entered a rangetrading phase, and it is likely to trade between 0.8200 and 0.8290.”