CHFSGD
Buy CHFSGDMonthly chart shows us a triple bottom and the day chart shows it is nearly done with the selling as well. Now it is likely to breakout of the white line from the inverse Cup and Handle pattern. From the candles, it shows weaken selling and buyers are getting stronger as well. We are taking a small position to test our hypothesis. Trade safely.
CHF/SGD 1H Chart: Channels prevailCHF/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.
CHF/SGD 1H Chart: Pair remains near channel lineThe 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.
CHF/SGD 1H Chart: Channel UpCHF/SGD 1H Chart: Channel Up
The Swiss Franc is gaining value against the Singapore Dollar in a short-term ascending channel that started to form after the currency exchange rate bounced off from the weekly S1 at 1.4007.
Depending on how you draw the pattern, it will consist of two reaction highs or three reaction lows.
In any case, there is a clearly seen uptrend that is backed up by the 55-, 100- and 200-hour SMA from the bottom.
At the moment, the currency pair has no barriers on its way up until the weekly R1 at 1.4285.
The further movement to the top is also supported by the general market sentiment, which is 74% bullish.
However, if the rate will fail to climb above the 1.4240-1.4260 area this might be a sign of an existence of senior ascending channel.
