SGDCHF unable to break through key resistance level
Singapore Dollar/Swiss Franc (SGDCHF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDCHF finished Thursday at 0.6730 losing 21 pips (-0.31%). Closing below Wednesday's low at 0.6740, the market confirmed its breakout through the previous session low after trading up to 29 pips below it intraday.
Daily Candlestick Chart (SGDCHF as at Mar 26, 2020):
Thursday's trading range has been 60 pips (0.89%), that's below the last trading month's daily average range of 90 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SGDCHF.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on March 16th, SGDCHF gained 0.93% on the following trading day.
Unable to break through the key technical resistance level at 0.6753 (R1), the pair closed below it after spiking up to 0.6771 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
While SGD/CHF is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the close-by swing low at 0.6702 where further sell stops could get triggered. With prices trading close to this year's low at 0.6608, downside momentum might speed up should the forex pair break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for SGD/CHF. Out of 549 times, SGDCHF closed lower 54.83% 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 51.91% with an average market move of -0.14%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more