USD/SGD 4H Chart: Channel Down

CAD/CHF 4H Chart: Channel Up

Comment: A plunge to a three-year low of 0.7805 in mid-March provoked a long-lasting climb of CAD/CHF that now is trading within the boundaries of the 131-bar long channel up pattern.

At the moment the currency couple is sitting close to a six-month high of 0.8422 it reached Jul 4 and given that the instrument got a strong bullish momentum after testing the lower boundary of the channel several hours earlier, the pair may not only re-approach the recent high but also surpass this formidable resistance in the hours to come. Meanwhile, technical indicators are neutral for the short and medium terms but sends a clear bullish signal for the long-term.

NZD/USD 1H Chart: Channel Up

Comment: Throughout the last three months, NZD/USD has been able to appreciate indefatigably and recently has hit a three-year high of 0.8838. In fact, the latest part of the advance represents not a set of chaotic moves but a distinct upside developing between two upward-sloping lines.

Currently, the pair is facing mild losses that followed a jump to the recent high. Meanwhile, according to the SWFX data, the weakness may persist in the hours to come – about 58% of all orders are placed to sell the pair – that coupled with the fact NZD/USD is trading near the lower boundary of the pattern, means a bearish exit is possible.

USD/SGD 4H Chart: Channel Down

Comment: Since the very beginning of the summer, the U.S. Dollar has been losing value against its Singapore counterpart and early July the pair entered a channel down pattern that now is over 199-bar long.

A few days earlier, USD/SGD approached a 10-month low of 1.2396 that gave the currency couple an impulse for a rise the pattern’s resistance line. Although the pair now seems to have already started its way down towards the opposite side of the pattern, market players still believe we are likely to witness appreciation soon – 70% of all orders are long and only 30% are short.

GBP/JPY 1H Chart: Channel Down

Comment: A 10-day long downswing performed by GBP/JPY started early July when the pair touched a seven-month high of 175.37. This has led to formation of the bearish corridor, inside which the pair is trading now.

At the moment, SWFX sentiment is bullish – almost two-thirds of market players hold long positions, alluding that an up-trend is likely to lie ahead. The confirmation of this would be a rise above at least 173.52/62 (four-hour PP, R1; daily PP) that if overcome may push the next resistance zone at 173.73/86 (four-hour R2, R3; 50-hour SMA) to the fore, above which there is nothing to prevent the instrument from attaining the pattern’s upper limit.