SGDHKD pushes through Tuesday's high
Singapore Dollar/Hong Kong Dollar (SGDHKD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SGDHKD ended Wednesday at 5.7043 gaining 101 pips (0.18%). Closing above Tuesday's high at 5.7030, SGD/HKD confirmed its breakout through the previous session high after trading up to 108 pips above it intraday.
Daily Candlestick Chart (SGDHKD as at Sep 16, 2020):
Wednesday's trading range has been 247 pips (0.43%), that's far above the last trading month's daily average range of 268 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SGDHKD.
Prices are trading close to the key technical support level at 5.6616 (S1). Prices are trading close to the key technical resistance level at 5.7154 (R1). The currency was bought again around 5.6891 after having seen lows at 5.6758, 5.6620 and 5.6557 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 5.6557 where further sell stops might get activated. With prices trading close to this year's low at 0.0009, downside momentum could speed up should the market break out to new lows for the year. As prices are trading close to September's high at 5.7154, upside momentum might accelerate should the FX pair mark new highs for the month. Trading close to July's low at 5.5470 we could see further downside momentum if potential sell stops at the level get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior three Lows" stand out. Its common bullish interpretation has been confirmed for SGD/HKD. Out of 121 times, SGDHKD closed higher 56.20% 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 68.60% with an average market move of 0.47%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more