NZDSGD unable to break through key resistance level
New Zealand Dollar/Singapore Dollar (NZDSGD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, NZDSGD ended Thursday at 0.8532 gaining 62 pips (0.73%). Trading up to 99 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NZDSGD as at Mar 26, 2020):
Thursday's trading range has been 197 pips (2.33%), that's slightly below the last trading month's daily average range of 212 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for NZDSGD. Prices continued to consolidate within a tight trading range between 0.8304 and 0.8568 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar.
Unable to break through the key technical resistance level at 0.8557 (R1), the forex pair closed below it after spiking up to 0.8568 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 0.8394 in the prior session, the pair found buyers again around the same price level today at 0.8371. The last time this happened on Monday, NZDSGD gained 0.92% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for NZD/SGD. Out of 447 times, NZDSGD closed lower 57.05% 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 52.13% with an average market move of -0.18%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more