AUDSGD finds buyers at key support level
Australian Dollar/Singapore Dollar (AUDSGD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, AUDSGD ended Wednesday at 0.9926 losing 12 pips (-0.12%). Trading 25 pips higher after the open, the pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AUDSGD as at Sep 16, 2020):
Wednesday's trading range has been 67 pips (0.67%), that's slightly below the last trading month's daily average range of 69 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUDSGD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 0.9898 earlier during the day, the currency bounced off the key technical support level at 0.9899 (S1). The failure to close below the support could increase that levels importance as support going forward. The forex pair closed back below the 20-day moving average at 0.9928 for the first time since September 8th. When this moving average was crossed below the last time on September 8th, AUDSGD actually gained 0.63% on the following trading day.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 0.9983 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 0.9858 where further sell stops might get activated. With prices trading close to this year's high at 1.0064, upside momentum could speed up should the FX pair be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for AUD/SGD. Out of 455 times, AUDSGD closed higher 55.16% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more