CHF/SGD 4H Chart: Channel Down

After topping out near 1.44, CHF/SGD started to pare little by little previous gains. As a result, the currency pair has crossed the 200-period SMA and formed a downward-sloping channel. This implies that the Swiss Franc should prove to be unable to rise beyond the resistance between 1.4162 and 1.4121, consisting of the weekly PP, falling resistance line and the mentioned moving average. Instead, the price is likely to head towards 1.39, where the lower edge of the channel crosses the weekly S2. Judging by the SWFX sentiment index, traders support depreciation of the Franc—at the moment 70% of positions are short, even though daily and weekly technical indicators are mostly giving ‘buy' signals.