CHFSGD slips to lowest close since March 11th
Swiss Franc/Singapore Dollar (CHFSGD) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CHFSGD ended Tuesday at 1.3439 losing 36 pips (-0.27%). Today's close at 1.3439 marks the lowest recorded closing price since March 11th. Trading 25 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Monday's low at 1.3466, the currency confirmed its breakout through the previous session low after trading up to 34 pips below it intraday.
Daily Candlestick Chart (CHFSGD as at Apr 16, 2019):
Tuesday's trading range has been 63 pips (0.47%), that's slightly above the last trading month's daily average range of 54 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 CHFSGD.
Prices broke below the key technical support level at 1.3461 (now R1), which is likely to act as resistance going forward.
Crossing below the lower Bollinger Band for the first time since January 17th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 1.3557 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on January 16th, CHFSGD lost -0.34% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 1.3412, downside momentum could speed up should the forex pair break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for CHF/SGD. Out of 141 times, CHFSGD closed lower 56.03% 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 63.83% with an average market move of -0.27%.