CADSGD breaks back above 100-day moving average
Canadian Dollar/Singapore Dollar (CADSGD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CADSGD finished the month 0.07% higher at 1.0265 after surging 64 pips (0.63%) today on low volume. This is the biggest single-day gain in over four weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 1.0206, the pair confirmed its breakout through the prior session high after trading up to 63 pips above it intraday.
Daily Candlestick Chart (CADSGD as at Jun 30, 2020):
Tuesday's trading range has been 76 pips (0.74%), that's far above the last trading month's daily average range of 58 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 CADSGD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on April 17th, CADSGD lost -1.10% on the following trading day.
CAD/SGD managed to close back above the 100-day moving average at 1.0224 for the first time since June 23rd.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 1.0315 where further buy stops might get activated.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for CAD/SGD. Out of 91 times, CADSGD closed lower 62.64% 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 60.44% with an average market move of -0.20%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more