SGDAUD still stuck within tight trading range
Singapore Dollar/Australian Dollar (SGDAUD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
SGDAUD finished the month -2.02% lower at 1.0185 after gaining 56 pips (0.55%) today on high volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SGDAUD as at Jul 31, 2020):
Friday's trading range has been 93 pips (0.92%), that's far above the last trading month's daily average range of 68 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 slightly lower than usual for SGDAUD. Prices continued to consolidate within a tight trading range between 1.0102 and 1.0204 where it has been caught now for the whole last trading week.
Regardless of a weak opening the forex pair managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on July 23rd, SGDAUD gained 0.14% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 1.0199 (R1). After having been unable to move above 1.0199 in the previous session, the currency ran into sellers again around the same price level today, missing to move higher than 1.0195.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 1.0199 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for SGD/AUD. Out of 448 times, SGDAUD closed lower 53.79% of the time on the next trading day after the market condition occurred.