CHFSGD finds buyers again around 1.4588
Swiss Franc/Singapore Dollar (CHFSGD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CHFSGD finished the week -0.15% lower at 1.4671 after gaining 64 pips (0.44%) today on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 1.4663, the pair confirmed its breakout through the prior session high after trading up to 19 pips above it intraday.
Daily Candlestick Chart (CHFSGD as at May 22, 2020):
Friday's trading range has been 94 pips (0.64%), that's slightly below the last trading month's daily average range of 98 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHFSGD.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on May 14th, CHFSGD gained 0.44% on the following trading day. In spite of a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 1.4588 earlier during the day, CHF/SGD bounced off the key technical support level at 1.4599 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 1.4592 in the prior session, the forex pair found buyers again around the same price level today at 1.4588.
The FX pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the close-by swing high at 1.4706 where further buy stops could get triggered. As prices are trading close to May's high at 1.4760, upside momentum might accelerate should the currency mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for CHF/SGD. Out of 240 times, CHFSGD closed lower 54.17% 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 55.00% with an average market move of -0.19%.