CHFSGD finds support at 50-day moving average
Swiss Franc/Singapore Dollar (CHFSGD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
CHFSGD finished the month 0.12% higher at 1.4710 after gaining 60 pips (0.41%) today on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHFSGD as at Jun 30, 2020):
Tuesday's trading range has been 106 pips (0.72%), that's slightly above the last trading month's daily average range of 101 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CHFSGD. Prices continued to consolidate within a tight trading range between 1.4628 and 1.4745 where it has been caught now for the whole last trading week.
Despite a weak opening the pair managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 4th, CHFSGD actually lost -1.06% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading as low as 1.4628 during the day, the market found support at the 50-day moving average at 1.4630. Prices are trading close to the key technical resistance level at 1.4760 (R1). After having been unable to move above 1.4745 in the prior session, CHF/SGD ran into sellers again around the same price level today, missing to move higher than 1.4734.
The forex 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 nearby swing high at 1.4745 where further buy stops could get activated. As prices are trading close to June's high at 1.4819, upside momentum might accelerate should the FX pair mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for CHF/SGD. Out of 239 times, CHFSGD closed lower 54.39% 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 56.07% with an average market move of -0.23%.