SGDNZD finds buyers at key support level
Singapore Dollar/New Zealand Dollar (SGDNZD) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
SGDNZD finished the week 0.12% higher at 1.1136 after losing 12 pips (-0.11%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SGDNZD as at May 17, 2019):
Friday's trading range has been 49 pips (0.44%), that's below the last trading month's daily average range of 63 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SGDNZD. Prices continued to consolidate within a tight trading range between 1.1084 and 1.1159 where it has been caught now for the whole last trading week.
After trading down to 1.1110 earlier during the day, the currency bounced off the key technical support level at 1.1112 (S1). The failure to close below the support might increase that levels importance as support going forward. The pair found buyers again today around 1.1110 for the third trading day in a row after having found demand at 1.1102 in the previous session and at 1.1102 two days ago. The last time this happened on May 10th, SGDNZD actually lost -0.11% on the following trading day.
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 1.1084 where further sell stops might get triggered. 2018's high at 1.1255 is within reach and we could see further upside momentum should SGD/NZD manage to break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for SGD/NZD. Out of 227 times, SGDNZD closed lower 55.51% 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 five trading days, showing a win rate of 56.39% with an average market move of -0.05%.