CHF/SGD 4H Chart: Channel Down

As it turned out, a rally through the 200-period SMA proved to be unsustainable. Since then the Swiss Franc has been underperforming the Singapore Dollar, resulting in emergence of the bearish channel.

However, in the near term CHF/SGD may rise, being that the currency pair is trading at the lower boundary of the pattern at 1.4051, which is reinforced by the daily S1. If this is the case, the advancement should be stopped at the upper down-trend, namely at 1.4259, where it merges with the weekly R1 and daily R2 levels. There the bears will be expected to regain control of the market and resume the sell-off.