AUDSGD pushes through Tuesday's high
Australian Dollar/Singapore Dollar (AUDSGD) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AUDSGD finished Wednesday at 0.9850 gaining 17 pips (0.17%). Closing above Tuesday's high at 0.9841, the forex pair confirmed its breakout through the previous session high after trading up to 59 pips above it intraday.
Daily Candlestick Chart (AUDSGD as at Aug 05, 2020):
Wednesday's trading range has been 81 pips (0.82%), that's above the last trading month's daily average range of 67 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AUDSGD.
Unable to break through the key technical resistance level at 0.9893 (R1), the FX pair closed below it after spiking up to 0.9900 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 19th, AUDSGD actually gained 0.73% on the following trading day.
While the pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 0.9933, upside momentum could speed up should AUD/SGD be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for AUD/SGD. Out of 586 times, AUDSGD closed lower 53.75% 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 53.07% with an average market move of -0.18%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are EURUSD gaining 0.52% and AUDUSD closing 0.42% higher. On the flipside the worst performers have been USDCHF closing -0.53% lower and USDCAD losing -0.4%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been EURTRY surging 2.58% and USDTRY closing 2.08% higher. The worst performers of the day have been TRYJPY tanking -2.09% and USDNOK closing -1.58% lower. Read more