NZDSGD runs into sellers around 0.8702 for the third day in a row
New Zealand Dollar/Singapore Dollar (NZDSGD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
NZDSGD ended the week 2.59% higher at 0.8690 after gaining 13 pips (0.15%) today. Today's close at 0.8690 marks the highest recorded closing price since March 11th. Trading up to 21 pips lower after the open, NZD/SGD managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, NZDSGD actually lost -0.81% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NZDSGD as at May 22, 2020):
Friday's trading range has been 48 pips (0.55%), that's far below the last trading month's daily average range of 85 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NZDSGD.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Last Engulfing Top Pattern which are both known as bearish patterns.
Prices are trading close to the key technical support level at 0.8636 (S1). After spiking up to 0.8702 during the day, the currency found resistance at the 100-day moving average at 0.8701. The pair ran into sellers again today around 0.8702 for the third trading day in a row after having found sellers at 0.8696 in the previous session and at 0.8698 two days ago.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for NZD/SGD. Out of 135 times, NZDSGD closed higher 57.04% of the time on the next trading day after the market condition occurred.
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