SGDHKD breaks below Thursday's low


Singapore Dollar/Hong Kong Dollar (SGDHKD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team

Highlights

SGDHKD tanks -0.51% closing 277 pips lower
SGDHKD breaks back below 20-day moving average
SGDHKD finds buyers around 5.4389 for the forth day in a row
SGDHKD dominated by bears dragging the market lower throughout the day
SGDHKD finds support at 50-day moving average

Overview

Moving lower for the 2nd day in a row, SGDHKD finished the week 0.24% higher at 5.4431 after tanking 277 pips (-0.51%) today. This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on April 21st, SGDHKD actually gained 0.29% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 5.4683, the pair confirmed its breakout through the prior session low after trading up to 294 pips below it intraday.

Daily Candlestick Chart (SGDHKD as at May 22, 2020):

Daily technical analysis candlestick chart for Singapore Dollar/Hong Kong Dollar (SGDHKD) as at May 22, 2020

Friday's trading range has been 367 pips (0.67%), that's slightly below the last trading month's daily average range of 92233720368547776 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SGDHKD.

Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.

After trading as low as 5.4389 during the day, SGD/HKD found support at the 50-day moving average at 5.4405. The market closed back below the 20-day moving average at 5.4680 for the first time since May 15th. The FX pair was bought again around 5.4389 after having seen lows at 5.4683, 5.4646 and 5.4590 in the last three trading sessions. Obviously there is something going on at that level.

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 5.4886 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 5.4273 where further sell stops could get activated. With prices trading close to this year's low at 0.0009, downside momentum might speed up should the currency break out to new lows for the year. As prices are trading close to May's high at 5.4964, upside momentum could accelerate should the forex pair mark new highs for the month.

Among the 19 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous three Highs" stand out. Its common bearish interpretation has been confirmed for SGD/HKD. Out of 56 times, SGDHKD closed lower 58.93% of the time on the next trading day after the market condition occurred.

With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDJPY closing -0.5% lower. Read more


Market Conditions for SGDHKD as at May 22, 2020

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