NZDSGD unable to break through key resistance level
New Zealand Dollar/Singapore Dollar (NZDSGD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NZDSGD ended Wednesday at 0.9147 gaining 10 pips (0.11%). 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 Sep 16, 2020):
Wednesday's trading range has been 47 pips (0.51%), that's below the last trading month's daily average range of 69 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NZDSGD. Prices continued to consolidate within a tight trading range between 0.9087 and 0.9171 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on July 27th, NZDSGD lost -0.35% on the following trading day.
Unable to break through the key technical resistance level at 0.9151 (R1), the market closed below it after spiking up to 0.9171 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Although the 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.
Selling might accelerate should prices move below the close-by swing low at 0.9087 where further sell stops could get triggered. With prices trading close to this year's high at 0.9254, upside momentum might speed up should NZD/SGD be able to break out to new highs for the year. As prices are trading close to September's high at 0.9236, upside momentum could accelerate should the currency mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for NZD/SGD. Out of 775 times, NZDSGD closed higher 52.00% 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 52.77% with an average market move of 0.10%.
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