SGDCAD closes lower for the 2nd day in a row
Singapore Dollar/Canadian Dollar (SGDCAD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDCAD ended Thursday at 0.9795 edging lower 10 pips (-0.1%). Trading 92 pips higher after the open, SGD/CAD was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 19th, SGDCAD lost -0.99% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SGDCAD as at Mar 26, 2020):
Thursday's trading range has been 113 pips (1.15%), that's slightly below the last trading month's daily average range of 129 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SGDCAD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 0.9692 (S1). Prices broke below the key technical support level at 0.9797 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 0.9795 in the prior session, the FX pair found buyers again around the same price level today at 0.9784.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for SGD/CAD. Out of 263 times, SGDCAD closed higher 53.99% 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 56.65% with an average market move of 0.20%.