AUDSGD closes above its opening price after recovering from early selling pressure
Australian Dollar/Singapore Dollar (AUDSGD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AUDSGD ended the week 1.74% higher at 0.9315 after gaining 8 pips (0.09%) today. Trading up to 36 pips lower after the open, the currency managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, AUDSGD actually lost -0.46% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AUDSGD as at May 22, 2020):
Friday's trading range has been 51 pips (0.55%), that's far below the last trading month's daily average range of 84 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AUDSGD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man.
After having been unable to move lower than 0.9272 in the previous session, AUD/SGD found buyers again around the same price level today at 0.9269.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 0.9345 where further buy stops might get triggered. With prices trading close to this year's high at 0.9447, upside momentum could speed up should the forex pair be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for AUD/SGD. Out of 70 times, AUDSGD closed lower 54.29% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 61.43% with an average market move of -0.32%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more