USD/CHF Pair Eyes 0.8185 as Momentum Continues to Build

UOB strategist Quek Ser Leang notes that despite being overbought, the USD/CHF pair has continued to extend its gains. The pair reached a high of 0.8147 last Thursday and closed at 0.8161 on Friday, with conditions remaining overbought but momentum still strong.

Intraday, the pair could test 0.8185, though 0.8205 is seen as a tough barrier to break through. However, it's unclear if the upward momentum will be sufficient for a move to 0.8205 on a 1-3 week view.

The 'strong support' level is now at 0.8110, which would provide a floor for any potential decline in the pair. If USD holds above 0.8140, it could continue to rise, but further advance beyond 0.8205 appears unlikely.