CADSGD runs into sellers again around 1.0221
Canadian Dollar/Singapore Dollar (CADSGD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CADSGD finished Thursday at 1.0209 edging higher 10 pips (0.1%). Trading up to 95 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 19th, CADSGD gained 1.00% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CADSGD as at Mar 26, 2020):
Thursday's trading range has been 117 pips (1.15%), that's slightly below the last trading month's daily average range of 132 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CADSGD.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
Buyers managed to take out the key technical resistance level at 1.0207 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 1.0318 (R1). After having been unable to move above 1.0209 in the previous session, the pair ran into sellers again around the same price level today, failing to move higher than 1.0221.
Although the FX pair is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight 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 CAD/SGD. Out of 38 times, CADSGD closed lower 60.53% 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 57.89% with an average market move of -0.22%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more