EURSGD still stuck within tight trading range
Euro/Singapore Dollar (EURSGD) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
EURSGD ended Thursday at 1.4940 losing 22 pips (-0.15%) on high volume. Today's close at 1.4940 marks the lowest recorded closing price since April 17, 2017. Trading 26 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 16th, EURSGD lost -0.39% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EURSGD as at Jan 23, 2020):
Thursday's trading range has been 67 pips (0.45%), that's slightly above the last trading month's daily average range of 57 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 EURSGD. Prices continued to consolidate within a tight trading range between 1.4921 and 1.5008 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
After trading down to 1.4921 earlier during the day, the forex pair bounced off the key technical support level at 1.4927 (S1). The failure to close below the support might increase that levels importance as support going forward. Unable to break through the key technical resistance level at 1.4969 (R1), the market closed below it after spiking up to 1.4988 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for EUR/SGD. Out of 565 times, EURSGD closed lower 54.34% 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 54.69% with an average market move of -0.17%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are EURUSD losing -0.34% and USDJPY closing -0.32% lower. On the flipside the best performers have been NZDUSD closing 0.38% higher and USDCHF gaining 0.11%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been NZDSGD surging 0.57% and USDPLN closing 0.53% higher. The worst performers of the day have been ZARJPY tanking -0.91% and EURNZD closing -0.72% lower. Read more