SGDAUD closes lower for the 2nd day in a row
Singapore Dollar/Australian Dollar (SGDAUD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDAUD ended the month -2.08% lower at 1.0395 after losing 54 pips (-0.52%) today on low volume. Closing below Monday's low at 1.0422, SGD/AUD confirmed its breakout through the previous session low after trading up to 41 pips below it intraday.
Daily Candlestick Chart (SGDAUD as at Jun 30, 2020):
Tuesday's trading range has been 93 pips (0.89%), that's slightly below the last trading month's daily average range of 111 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SGDAUD.
One bearish candlestick pattern matches today's price action, the Black Candle.
The pair closed back below the 20-day moving average at 1.0395 for the first time since June 23rd. When this moving average was crossed below the last time on June 22nd, SGDAUD lost -0.22% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 1.0491 where further buy stops could get triggered. With prices trading close to this year's low at 1.0238, downside momentum might speed up should the currency break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for SGD/AUD. Out of 488 times, SGDAUD closed higher 54.51% 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 54.92% with an average market move of 0.23%.