CHFSGD breaks back below 50-day moving average
Swiss Franc/Singapore Dollar (CHFSGD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CHFSGD finished Wednesday at 1.4939 losing 49 pips (-0.33%). Closing below Tuesday's low at 1.4981, the forex pair confirmed its breakout through the previous session low after trading up to 60 pips below it intraday.
Daily Candlestick Chart (CHFSGD as at Sep 16, 2020):
Wednesday's trading range has been 81 pips (0.54%), that's slightly below the last trading month's daily average range of 82 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
The pair closed back below the 50-day moving average at 1.4976 for the first time since September 8th. When this moving average was crossed below the last time on September 7th, CHFSGD actually gained 0.10% on the following trading day.
Though the currency is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 1.4883 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for CHF/SGD. Out of 140 times, CHFSGD closed lower 55.00% 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 60.71% with an average market move of -0.19%.