CHFSGD finds buyers around 1.4166 for the forth day in a row
Swiss Franc/Singapore Dollar (CHFSGD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CHFSGD ended the week -0.27% lower at 1.4174 after losing 10 pips (-0.07%) today. Trading 19 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CHFSGD as at Feb 14, 2020):
Friday's trading range has been 41 pips (0.29%), that's far below the last trading month's daily average range of 75 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CHFSGD. Prices continued to consolidate within a tight trading range between 1.4166 and 1.4233 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
After trading down to 1.4166 earlier during the day, the FX pair bounced off the key technical support level at 1.4166 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 29th, CHFSGD gained 0.51% on the following trading day. The pair was bought again around 1.4166 after having seen lows at 1.4168, 1.4166 and 1.4172 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 1.4233 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 1.4166 where further sell stops might get triggered. As prices are trading close to February's low at 1.4118, downside momentum could speed up should CHF/SGD mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous three Lows" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for CHF/SGD. Out of 60 times, CHFSGD closed lower 56.67% 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 60.00% with an average market move of -0.24%.