SGDEUR closes above its opening price after recovering from early selling pressure
Singapore Dollar/Euro (SGDEUR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
SGDEUR finished the month 0.2% higher at 0.6388 after edging higher 5 pips (0.08%) today on low volume. Trading up to 13 pips lower after the open, the currency managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SGDEUR as at Jun 30, 2020):
Tuesday's trading range has been 23 pips (0.36%), that's far below the last trading month's daily average range of 40 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 0.6371 earlier during the day, the pair bounced off the key technical support level at 0.6384 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 19th, SGDEUR actually lost -0.39% on the following trading day.
Though the forex pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 0.6414 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 0.6363 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for SGD/EUR. Out of 560 times, SGDEUR closed higher 51.43% 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 51.96% with an average market move of 0.06%.