SGDCAD climbs to highest close since August 10th
Singapore Dollar/Canadian Dollar (SGDCAD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SGDCAD ended Wednesday at 0.9700 gaining 12 pips (0.12%). Today's close at 0.9700 marks the highest recorded closing price since August 10th. Closing above Tuesday's high at 0.9696, the FX pair confirmed its breakout through the prior session high after trading up to 17 pips above it intraday.
Daily Candlestick Chart (SGDCAD as at Sep 16, 2020):
Wednesday's trading range has been 36 pips (0.37%), that's below the last trading month's daily average range of 49 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SGDCAD.
Prices are trading close to the key technical support level at 0.9674 (S1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 0.9626.
While the pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further buying might move prices higher should the market test August's close-by high at 0.9767.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for SGD/CAD. Out of 162 times, SGDCAD closed lower 54.94% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.70% with an average market move of -0.07%.