SGDHKD surges, gaining 603 pips (1.13%) within a single day
Singapore Dollar/Hong Kong Dollar (SGDHKD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
SGDHKD finished Thursday at 5.4162 surging 603 pips (1.13%). This is the biggest single-day gain in over three years. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 5.3689, the forex pair confirmed its breakout through the previous session high after trading up to 506 pips above it intraday.
Daily Candlestick Chart (SGDHKD as at Mar 26, 2020):
Thursday's trading range has been 763 pips (1.42%), that's far above the last trading month's daily average range of 470 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SGDHKD.
Notwithstanding a weak opening the FX pair 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.
After having been unable to move lower than 5.3422 in the previous session, the market found buyers again around the same price level today at 5.3432. The last time this happened on Tuesday, SGDHKD actually lost -0.09% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for SGD/HKD. Out of 124 times, SGDHKD closed lower 54.84% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.42% with an average market move of -0.13%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more