EURSGD closes below its opening price unable to hold early session gains
Euro/Singapore Dollar (EURSGD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
EURSGD ended the month 3.42% higher at 1.6190 after losing 68 pips (-0.42%) today on high volume. Trading 45 pips higher after the open, the forex 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.
Daily Candlestick Chart (EURSGD as at Jul 31, 2020):
Friday's trading range has been 131 pips (0.81%), that's far above the last trading month's daily average range of 90 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for EURSGD.
Even with a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, EURSGD actually gained 0.25% on the following trading day.
Prices are trading close to the key technical support level at 1.6137 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 1.6137 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Its common bearish interpretation has been confirmed for EUR/SGD. Out of 111 times, EURSGD closed lower 55.86% 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 48.65% with an average market move of -0.04%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more