SGDEUR pushes through Monday's high
Singapore Dollar/Euro (SGDEUR) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
SGDEUR finished Tuesday at 0.6545 gaining 7 pips (0.11%). Trading up to 12 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 0.6543, the FX pair confirmed its breakout through the previous session high after trading up to 3 pips above it intraday.
Daily Candlestick Chart (SGDEUR as at Apr 16, 2019):
Tuesday's trading range has been 19 pips (0.29%), that's slightly below the last trading month's daily average range of 24 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SGDEUR.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on October 11, 2018, SGDEUR gained 0.18% on the following trading day.
After trading down to 0.6527 earlier during the day, the currency bounced off the key technical support level at 0.6533 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move above 0.6543 in the prior session, the forex pair ran into sellers again around the same price level today, failing to move higher than 0.6546.
Although SGD/EUR is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the nearby swing low at 0.6524 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for SGD/EUR. Out of 25 times, SGDEUR closed higher 56.00% 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 56.00% with an average market move of 0.25%.