CHF/USD Range Trading to Continue: UOB Analysts
UOB's analysts Quek Ser Leang and Lee Sue Ann believe that the Swiss Franc (CHF) pair against the US Dollar (USD) is experiencing a range-trading phase. The pair has been trading between 0.8065 and 0.8109, with yesterday's close at 0.8099. This morning, they expect USD/CHF to trade within a narrower band of 0.8060-0.8135 in the coming weeks.
On a 1-3 month horizon, the analysts see scope for further rebound but doubt a retest of the July peak at 0.8206. They pointed out that Tuesday's price action showed no shift in momentum, and the current movements are likely part of a range-trading phase between 0.8075 and 0.8115.
Initially, UOB expected USD to trade in a range between 0.8055 and 0.8155, but now they believe a narrower range is sufficient to contain price movements for now.