SGDEUR closes higher for the 3rd day in a row
Singapore Dollar/Euro (SGDEUR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SGDEUR finished Wednesday at 0.6229 surging 27 pips (0.44%). This is the biggest single-day gain in over a month. Today's close at 0.6229 marks the highest recorded closing price since July 22nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 0.6205, the pair confirmed its breakout through the previous session high after trading up to 34 pips above it intraday.
Daily Candlestick Chart (SGDEUR as at Sep 16, 2020):
Wednesday's trading range has been 43 pips (0.69%), that's far above the last trading month's daily average range of 32 pips. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SGDEUR.
One bullish candlestick pattern matches today's price action, the White Candle.
The forex pair managed to close above the 50-day moving average at 0.6206 for the first time since May 20th. When this moving average was crossed above the last time on May 4th, SGDEUR gained 0.71% on the following trading day.
Crossing above the upper Bollinger Band for the first time since January 17th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.6186 or signal the beginning of a strong momentum breakout leading to even higher prices.
While the FX pair is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for SGD/EUR. Out of 84 times, SGDEUR closed higher 50.00% 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 58.33% with an average market move of 0.18%.