CHFSGD finds buyers again around 1.5020
Swiss Franc/Singapore Dollar (CHFSGD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CHFSGD ended the month 2.3% higher at 1.5049 after losing 48 pips (-0.32%) today on high volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHFSGD as at Jul 31, 2020):
Friday's trading range has been 111 pips (0.74%), that's far above the last trading month's daily average range of 84 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher 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 bearish Outside Bar. Notwithstanding a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle.
After having been unable to move lower than 1.5029 in the prior session, the forex pair found buyers again around the same price level today at 1.5020.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 1.4876. The last time this happened on Wednesday, CHFSGD actually gained 0.31% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 1.5133, upside momentum might speed up should the currency be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for CHF/SGD. Out of 140 times, CHFSGD closed higher 57.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.43% with an average market move of 0.12%.