EURSGD drops to lowest close since July 22nd
Euro/Singapore Dollar (EURSGD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EURSGD finished Wednesday at 1.6054 tanking 70 pips (-0.43%). This is the biggest single-day loss in over a month. Today's close at 1.6054 marks the lowest recorded closing price since July 22nd. Closing below Tuesday's low at 1.6115, the currency confirmed its breakout through the previous session low after trading up to 88 pips below it intraday.
Daily Candlestick Chart (EURSGD as at Sep 16, 2020):
Wednesday's trading range has been 112 pips (0.69%), that's far above the last trading month's daily average range of 83 pips. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EURSGD.
One bearish candlestick pattern matches today's price action, the Black Candle.
The pair closed below the 50-day moving average at 1.6115 for the first time since May 20th. When this moving average was crossed below the last time on May 4th, EURSGD lost -0.71% on the following trading day.
Crossing below the lower Bollinger Band for the first time since January 17th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 1.6166 or signal the beginning of a strong momentum breakout leading to even lower prices.
Though the FX pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. Its common bearish interpretation has been confirmed for EUR/SGD. Out of 82 times, EURSGD closed lower 50.00% 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 57.32% with an average market move of -0.16%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more