SGDAUD slips to lowest close since January 6th
Singapore Dollar/Australian Dollar (SGDAUD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
SGDAUD ended the week -0.82% lower at 1.0697 after losing 14 pips (-0.13%) today on low volume. Today's close at 1.0697 marks the lowest recorded closing price since January 6th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SGDAUD as at Feb 14, 2020):
Friday's trading range has been 37 pips (0.35%), that's below the last trading month's daily average range of 62 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SGDAUD. Prices continued to consolidate within a tight trading range between 1.0678 and 1.0748 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
Prices are trading close to the key technical support level at 1.0684 (S1). Prices are trading close to the key technical resistance level at 1.0733 (R1). After having been unable to move lower than 1.0678 in the prior session, the pair found buyers again around the same price level today at 1.0685. The last time this happened on January 30th, SGDAUD gained 0.34% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 1.0678 where further sell stops could get triggered. With prices trading close to this year's low at 1.0585, downside momentum might speed up should the FX pair break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for SGD/AUD. Out of 277 times, SGDAUD closed higher 51.26% 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 53.79% with an average market move of 0.25%.