NZDSGD pushes through Monday's high
New Zealand Dollar/Singapore Dollar (NZDSGD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
NZDSGD ended the month 2.62% higher at 0.8995 after gaining 48 pips (0.54%) today on low volume. Closing above Monday's high at 0.8972, the pair confirmed its breakout through the previous session high after trading up to 32 pips above it intraday.
Daily Candlestick Chart (NZDSGD as at Jun 30, 2020):
Tuesday's trading range has been 83 pips (0.93%), that's slightly above the last trading month's daily average range of 81 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for NZDSGD.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 0.8921 earlier during the day, the market bounced off the key technical support level at 0.8921 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on June 2nd, NZDSGD gained 0.71% on the following trading day. After spiking up to 0.9004 during the day, the currency found resistance at the 20-day moving average at 0.8998. After having been unable to move lower than 0.8915 in the prior session, the FX pair found buyers again around the same price level today at 0.8921.
Although the forex pair 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 nearby swing high at 0.9074 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 0.8915 where further sell stops could get activated. With prices trading close to this year's high at 0.9129, upside momentum might accelerate should NZD/SGD be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for NZD/SGD. Out of 596 times, NZDSGD closed higher 56.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.03% with an average market move of 0.13%.
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