AUDSGD closes below its opening price unable to hold early session gains
Australian Dollar/Singapore Dollar (AUDSGD) Technical Analysis Report for Nov 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AUDSGD finished Monday at 0.9321 losing 4 pips (-0.04%) on low volume. Trading 22 pips higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AUDSGD as at Nov 11, 2019):
Monday's trading range has been 30 pips (0.32%), that's far below the last trading month's daily average range of 45 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUDSGD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Inverted Hammer which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on October 23rd, AUDSGD lost -0.40% on the following trading day.
Prices are trading close to the key technical support level at 0.9311 (S1). After having been unable to move lower than 0.9311 in the previous session, the forex pair found buyers again around the same price level today at 0.9316.
While the currency is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the close-by swing low at 0.9311 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Inverted Hammer" stand out. Its common bullish interpretation has been confirmed for AUD/SGD. Out of 7 times, AUDSGD closed higher 71.43% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.14% with an average market move of 0.85%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.63% and NZDUSD closing 0.51% higher. On the flipside the worst performers have been USDCHF closing -0.38% lower and USDJPY losing -0.18%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 0.79% and GBPAUD closing 0.76% higher. The worst performers of the day have been AUDNZD tanking -0.65% and AUDCHF closing -0.51% lower. Read more