SGDAUD closes above its opening price after recovering from early selling pressure
Singapore Dollar/Australian Dollar (SGDAUD) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, SGDAUD finished the week 0.54% higher at 1.0087 after gaining 9 pips (0.09%) today. Trading up to 25 pips lower after the open, SGD/AUD managed to reverse during the session as bulls took control ending the day above its opening price. 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 Sep 18, 2020):
Friday's trading range has been 51 pips (0.51%), that's below the last trading month's daily average range of 69 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SGDAUD. Prices continued to consolidate within a tight trading range between 1.0017 and 1.0119 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 1.0117 (R1). After having been unable to move lower than 1.0060 in the previous session, the currency found buyers again around the same price level today at 1.0052. The last time this happened on Tuesday, SGDAUD gained 0.13% on the following trading day.
Although the FX pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 1.0119 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 1.0017 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for SGD/AUD. Out of 38 times, SGDAUD closed higher 60.53% 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 57.89% with an average market move of 0.09%.