SGDCAD dominated by bears dragging the market lower throughout the day
Singapore Dollar/Canadian Dollar (SGDCAD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDCAD ended the month -0.06% lower at 0.9742 after tanking 61 pips (-0.62%) today on low volume. This is the biggest single-day loss in over four weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 0.9798, the pair confirmed its breakout through the previous session low after trading up to 60 pips below it intraday.
Daily Candlestick Chart (SGDCAD as at Jun 30, 2020):
Tuesday's trading range has been 73 pips (0.74%), that's far above the last trading month's daily average range of 55 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 SGDCAD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on April 17th, SGDCAD gained 1.12% on the following trading day.
Prices are trading close to the key technical support level at 0.9703 (S1). The FX pair closed back below the 100-day moving average at 0.9783 for the first time since June 23rd.
The currency shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might accelerate should prices move below the nearby swing low at 0.9695 where further sell stops could get activated.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for SGD/CAD. Out of 91 times, SGDCAD closed higher 59.34% 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 60.44% with an average market move of 0.20%.