CADSGD closes above its opening price after recovering from early selling pressure
Canadian Dollar/Singapore Dollar (CADSGD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CADSGD ended the week 0.59% higher at 1.0177 after gaining 18 pips (0.18%) today. Today's close at 1.0177 marks the highest recorded closing price since April 14th. Trading up to 19 pips lower after the open, CAD/SGD managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 4th, CADSGD gained 0.21% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CADSGD as at May 22, 2020):
Friday's trading range has been 54 pips (0.53%), that's slightly below the last trading month's daily average range of 60 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CADSGD. Prices continued to consolidate within a tight trading range between 1.0138 and 1.0199 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
Prices are trading close to the key technical support level at 1.0158 (S1).
Though 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.
Buying could accelerate should prices move above the nearby swing high at 1.0206 where further buy stops might get triggered. Further buying could move prices higher should the market test April's close-by high at 1.0216.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for CAD/SGD. Out of 62 times, CADSGD closed lower 66.13% 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 64.52% with an average market move of -0.34%.
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