Exotics: SGD/CHF Set For A Rally?
Christopher Lewis | Jun 11, 2014 10:55AM ET
The SGD/CHF pair isn't one that a lot of people focus on, and quite frankly that is too bad, in my opinion. It is a highly technical pair and follows patterns quite nicely, most of the time. Also, the spread is completely reasonable with most brokers.
The pair has just finished an inverted head and shoulders on the daily chart, and we are now breaking out above the neckline. The 0.7150 level is the spot, and it has even been retested during the session today in order to confirm the resistance now becoming support.
The measurement of 300 pips from the bottom to the breakout suggests that we are heading to the 0.7475 level, which not only makes sense based upon longer-term charts, but is also just below a large, round, psychologically significant number in the form of 0.75 - a place that will attract a lot of attention.
Given this, I believe that a daily close above the neckline is worth the risk in taking a long position.
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