CHF/SGD 1H Chart: Channels prevail
CHF/SGD has been guided by two opposite channels. The senior formation has restricted the pair in a descending movement since late May.
After bouncing off its bottom boundary two weeks ago, the pair formed a junior channel up along the way. These two patterns suggest that the pair should appreciate during the following two weeks, at least. This assumption is reinforced by the fact that the rate might try to move away from the 1.3550 mark—its lowest level since early 2015.
In the short-term, however, the rate is likely to trade relatively sideways, given the movement of a minor three-day channel (drawn with dashed lines). The rate might hold this consolidation phase during this week and then resume its upward movement.
A near-term upside target is the weekly R2 and the monthly PP circa 1.3775.
After bouncing off its bottom boundary two weeks ago, the pair formed a junior channel up along the way. These two patterns suggest that the pair should appreciate during the following two weeks, at least. This assumption is reinforced by the fact that the rate might try to move away from the 1.3550 mark—its lowest level since early 2015.
In the short-term, however, the rate is likely to trade relatively sideways, given the movement of a minor three-day channel (drawn with dashed lines). The rate might hold this consolidation phase during this week and then resume its upward movement.
A near-term upside target is the weekly R2 and the monthly PP circa 1.3775.