© Dukascopy Bank SA
Owing to the demand near 1.37, CHF/SGD was able to stabilise and even start a recovery after a strong four-figure sell-off in July. The fact that the currency pair is forming an upward-sloping channel confirms this was a reversal rather than a temporary upward correction. But in the near term the price is likely to slide from 1.38 and down to the lower boundary of the pattern, which in turn must stay intact for the bullish outlook to remain valid. Otherwise there will be a high possibility of the pair visiting levels last seen in November of 2013—1.35. Meanwhile, a significant majority (73%) of the market participants are short on CHF/SGD.
© Dukascopy Bank SA