SGDEUR breaks below Wednesday's low
Singapore Dollar/Euro (SGDEUR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDEUR finished Thursday at 0.6333 losing 16 pips (-0.25%). Closing below Wednesday's low at 0.6342, the market confirmed its breakout through the prior session low after trading up to 27 pips below it intraday.
Daily Candlestick Chart (SGDEUR as at Mar 26, 2020):
Thursday's trading range has been 50 pips (0.79%), that's far below the last trading month's daily average range of 87 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SGDEUR.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on Monday, SGDEUR gained 0.41% on the following trading day.
Prices are trading close to the key technical support level at 0.6301 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 0.6261, downside momentum could accelerate should the currency break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for SGD/EUR. Out of 298 times, SGDEUR closed higher 53.69% 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 56.38% with an average market move of 0.18%.