SGDEUR closes within prior day's range
Singapore Dollar/Euro (SGDEUR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
SGDEUR finished the month -3.3% lower at 0.6177 after gaining 26 pips (0.42%) today on high volume. Trading up to 17 pips lower after the open, the FX pair 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.
Daily Candlestick Chart (SGDEUR as at Jul 31, 2020):
Friday's trading range has been 50 pips (0.81%), that's far above the last trading month's daily average range of 35 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SGDEUR.
Despite a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, SGDEUR actually lost -0.26% on the following trading day.
Prices are trading close to the key technical resistance level at 0.6197 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 0.6197 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for SGD/EUR. Out of 141 times, SGDEUR closed higher 51.06% 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 50.35% with an average market move of 0.11%.