CHFSGD pushes through Wednesday's high
Swiss Franc/Singapore Dollar (CHFSGD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CHFSGD ended Thursday at 1.4859 gaining 46 pips (0.31%). Closing above Wednesday's high at 1.4837, CHF/SGD confirmed its breakout through the prior session high after trading up to 64 pips above it intraday.
Daily Candlestick Chart (CHFSGD as at Mar 26, 2020):
Thursday's trading range has been 132 pips (0.89%), that's below the last trading month's daily average range of 196 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHFSGD. Prices continued to consolidate within a tight trading range between 1.4652 and 1.4921 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on March 16th, CHFSGD lost -0.92% on the following trading day.
After trading down to 1.4769 earlier during the day, the market bounced off the key technical support level at 1.4808 (S1). The failure to close below the support could increase that levels significance as support going forward.
Although the pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 1.4921 where further buy stops might get activated. With prices trading close to this year's high at 1.5133, upside momentum could speed up should the currency be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for CHF/SGD. Out of 801 times, CHFSGD closed lower 53.31% 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 52.56% with an average market move of -0.06%.