According to UOB strategist Quek Ser Leang, the USD/CHF currency pair extended its gains, reaching a high of 0.8170 and closing at 0.8161, marking a 0.44% increase. The strategist notes that while the pair is currently in overbought territory, the strong upward momentum suggests that USD/CHF could test the 0.8185 level in the near term. However, a further advance beyond the significant resistance at 0.8205 is considered highly unlikely at this stage [1].
On an intraday basis, the USD must maintain levels above 0.8140, with minor support identified at 0.8150, to sustain the current momentum. For the 1–3 week outlook, upward momentum is described as building, but it remains uncertain whether it will be sufficient for the USD/CHF to break above the 0.8205 resistance. The 'strong support' level has now shifted higher to 0.8110, indicating a firmer base for the pair [1].
The analysis highlights that the odds of a clear break above 0.8155 remain intact as long as the USD/CHF holds above the strong support level, previously at 0.8085 and now at 0.8110. The strategist emphasizes that while the rally has exceeded previous expectations, the market remains cautious about the potential for further significant gains beyond the current resistance levels [1].
CONCLUSION
USD/CHF has demonstrated strong upward momentum, testing key resistance levels and closing higher. While the rally has surpassed earlier expectations, analysts remain cautious about the potential for further gains beyond 0.8185, with significant resistance at 0.8205 and strong support at 0.8110. The market is watching closely to see if the momentum can be sustained.