Swiss Franc Gains May Be Capped Against US Dollar

The Swiss Franc has seen significant gains against the US Dollar over the past two days, but analysts at UOB believe that this upward momentum may be capped.

According to Quek Ser Leang and Lee Sue Ann from UOB, USD/CHF has surged in recent trading sessions, with strong momentum pointing to further Dollar strength. However, they stress that deeply overbought conditions are likely to limit any gains to the 0.8305-0.8330 area.

The analysts highlight short-term support at 0.8270 and 0.8255, warning that a breach of the latter level would indicate a decrease in upward pressure. They also note that the broader rebound is seen lacking momentum to revisit the July peak.