SGDCHF breaks back above 50-day moving average
Singapore Dollar/Swiss Franc (SGDCHF) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SGDCHF finished Wednesday at 0.6694 gaining 22 pips (0.33%). Closing above Tuesday's high at 0.6675, the market confirmed its breakout through the prior session high after trading up to 27 pips above it intraday.
Daily Candlestick Chart (SGDCHF as at Sep 16, 2020):
Wednesday's trading range has been 36 pips (0.54%), that's slightly below the last trading month's daily average range of 36 pips. Weekly volatility is also lower, being slightly 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 White Candle.
The forex pair managed to close back above the 50-day moving average at 0.6678 for the first time since September 8th. When this moving average was crossed above the last time on September 7th, SGDCHF actually lost -0.10% on the following trading day.
While SGD/CHF is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 0.6719 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for SGD/CHF. Out of 140 times, SGDCHF closed higher 55.00% 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 60.71% with an average market move of 0.21%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more