The SGD/CHF pair is one that I like to follow to get a grasp on risk appetite around the world. After all, the Singapore dollar is considered to be an emerging market currency, and a way to play Asian growth. On the other side of the equation is the Swiss franc, which of course is a very safe currency to buy into. In other words, as this pair goes higher, you should have more and more risk appetite when it comes to other markets.
This market is pressing up against the 0.7475 level, an area that has been significant resistance recently, as seen with the shooting star forming last week. The fact that we formed that shooting star and it extended all the way to the 0.75 level tells me that there is a significant amount of sell orders in that general vicinity. However, I don’t really see the market as not been able to do so. I think it’s only a matter of time as we have simply hung about just below that area.
I like the Singapore dollar anyway.
The Singapore dollar is a good way to play China. Most of you have no way of playing the Chinese currency, so the Singapore dollar is the next best thing. With that, and the fact that we formed a hammer, I believe that we are about to go higher. Any pullback at this point in time should be bought, as we have a nice uptrend line just below as well.
On top of that, I see a significant amount of support near the 0.74 level horizontally, so there really is no scenario in which I sell this market in the near term. In fact, this could be a nice “buy-and-hold” type of trade as the market tends to grind, but it does trend in nicely over the longer term. Ultimately, I think this market goes to the 0.77 handle in the near term, and probably the 0.80 level on the longer-term charts and for those of you who play weekly candles.
