SGDHKD closes lower for the 2nd day in a row
Singapore Dollar/Hong Kong Dollar (SGDHKD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDHKD finished the week -0.19% lower at 5.5792 after losing 112 pips (-0.2%) today on low volume. Today's close at 5.5792 marks the lowest recorded closing price since May 15, 2017. Closing below Thursday's low at 5.5878, the forex pair confirmed its breakout through the prior session low after trading up to 116 pips below it intraday.
Daily Candlestick Chart (SGDHKD as at Feb 14, 2020):
Friday's trading range has been 181 pips (0.32%), that's slightly below the last trading month's daily average range of 205 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for SGDHKD.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 5.5762 earlier during the day, SGD/HKD bounced off the key technical support level at 5.5778 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 27th, SGDHKD actually lost -0.03% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for SGD/HKD. Out of 67 times, SGDHKD closed higher 56.72% 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 58.21% with an average market move of 0.30%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more