SGDNZD closes within prior day's range
Singapore Dollar/New Zealand Dollar (SGDNZD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, SGDNZD finished Thursday at 1.1721 losing 85 pips (-0.72%). Trading 140 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, SGDNZD lost -0.92% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SGDNZD as at Mar 26, 2020):
Thursday's trading range has been 275 pips (2.33%), that's slightly below the last trading month's daily average range of 294 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SGDNZD.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.
After trading as low as 1.1671 during the day, the forex pair found support at the 20-day moving average at 1.1673. After having been unable to move lower than 1.1701 in the previous session, SGD/NZD found buyers again around the same price level today at 1.1671.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for SGD/NZD. Out of 447 times, SGDNZD closed higher 57.05% 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 51.90% with an average market move of 0.21%.