CADSGD closes within previous day's range
Canadian Dollar/Singapore Dollar (CADSGD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CADSGD finished the month -0.16% lower at 1.0249 after gaining 25 pips (0.24%) today on high volume. Trading up to 29 pips lower after the open, the pair managed to reverse during the session as bulls took control ending the day above 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 (CADSGD as at Jul 31, 2020):
Friday's trading range has been 79 pips (0.77%), that's far above the last trading month's daily average range of 56 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CADSGD.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on July 14th, CADSGD gained 0.60% on the following trading day.
After trading down to 1.0198 earlier during the day, the forex pair bounced off the key technical support level at 1.0206 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 1.0202 in the previous session, CAD/SGD found buyers again around the same price level today at 1.0198.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further selling could move prices lower should the market test June's close-by low at 1.0163.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for CAD/SGD. Out of 269 times, CADSGD closed lower 54.65% 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 56.51% with an average market move of -0.17%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more