EURSGD unable to break through key resistance level
Euro/Singapore Dollar (EURSGD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EURSGD finished the month -0.21% lower at 1.5654 after edging lower 12 pips (-0.08%) today on low volume. Trading 32 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. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EURSGD as at Jun 30, 2020):
Tuesday's trading range has been 55 pips (0.35%), that's far below the last trading month's daily average range of 98 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EURSGD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 1.5664 (R1), the forex pair closed below it after spiking up to 1.5695 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 19th, EURSGD actually gained 0.39% on the following trading day.
Although the currency is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 1.5716 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 1.5591 where further sell stops could get activated. As prices are trading close to June's low at 1.5590, downside momentum might accelerate should the pair mark new lows for the month.
Among the five 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 568 times, EURSGD closed lower 54.05% 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 53.87% with an average market move of -0.11%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more