EURSGD closes above its opening price after recovering from early selling pressure
Euro/Singapore Dollar (EURSGD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EURSGD finished the week 0.59% higher at 1.5536 after gaining 13 pips (0.08%) today. Today's close at 1.5536 marks the highest recorded closing price since May 1st. Trading up to 24 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 30th, EURSGD gained 0.61% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EURSGD as at May 22, 2020):
Friday's trading range has been 53 pips (0.34%), that's far below the last trading month's daily average range of 87 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 EURSGD.
Prices are trading close to the key technical resistance level at 1.5570 (R1). After having been unable to move lower than 1.5501 in the prior session, the currency found buyers again around the same price level today at 1.5495.
EUR/SGD shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 1.5570 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 1.5466 where further sell stops could get activated. As prices are trading close to May's high at 1.5590, upside momentum might accelerate should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for EUR/SGD. Out of 165 times, EURSGD closed lower 52.73% 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 53.33% with an average market move of -0.10%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more