AUDSGD closes within prior day's range
Australian Dollar/Singapore Dollar (AUDSGD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AUDSGD ended the month 2.06% higher at 0.9818 after losing 55 pips (-0.56%) today on high volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AUDSGD as at Jul 31, 2020):
Friday's trading range has been 90 pips (0.91%), that's far above the last trading month's daily average range of 65 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AUDSGD.
In spite of a strong opening the currency closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on July 23rd, AUDSGD lost -0.14% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 0.9795 (S1). After having been unable to move lower than 0.9805 in the prior session, the pair found buyers again around the same price level today at 0.9809.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 0.9805 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for AUD/SGD. Out of 457 times, AUDSGD closed higher 54.92% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more