CHF/SGD 1H Chart: Pair remains near channel line
The movement of the CHF/SGD exchange rate during the past weeks has been characterized by two descending channels. The senior formation which was formed late in August started with two distinctive downward-sloping waves.
Subsequently, the rate’s movement become rather chaotic in the result of which the junior channel started to appear. It has confined the pair near the upper boundary of the senior patter for several weeks.
The Franc has failed to reach the lower boundary of the junior pattern since last week, thus suggesting to a possible breakout north. However, given that this side is restricted by the upper channel line and the 200-hour SMA circa 1.3880, this surge might not be long-lasting.
The rate might still trade lower down to the monthly S2 circa 1.3750; however, bulls should eventually take the upper hand and thus make a breakout from both channels.
Subsequently, the rate’s movement become rather chaotic in the result of which the junior channel started to appear. It has confined the pair near the upper boundary of the senior patter for several weeks.
The Franc has failed to reach the lower boundary of the junior pattern since last week, thus suggesting to a possible breakout north. However, given that this side is restricted by the upper channel line and the 200-hour SMA circa 1.3880, this surge might not be long-lasting.
The rate might still trade lower down to the monthly S2 circa 1.3750; however, bulls should eventually take the upper hand and thus make a breakout from both channels.