SGDNZD breaks below 20-day moving average for the first time since February 19th


Singapore Dollar/New Zealand Dollar (SGDNZD) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team

Highlights

SGDNZD breaks below 20-day moving average for the first time since February 19th
SGDNZD closes lower for the 6th day in a row
SGDNZD breaks below Thursday's low

Overview

Moving lower for the 6th day in a row, SGDNZD finished the week -4.06% lower at 1.1614 after losing 107 pips (-0.91%) today. Closing below Thursday's low at 1.1671, the currency confirmed its breakout through the previous session low after trading up to 116 pips below it intraday.

Daily Candlestick Chart (SGDNZD as at Mar 27, 2020):

Daily technical analysis candlestick chart for Singapore Dollar/New Zealand Dollar (SGDNZD) as at Mar 27, 2020

Friday's trading range has been 244 pips (2.08%), that's slightly below the last trading month's daily average range of 294 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SGDNZD.

Prices are trading close to the key technical support level at 1.1397 (S1). The pair closed below the 20-day moving average at 1.1679 for the first time since February 19th. When this moving average was crossed below the last time on February 19th, SGDNZD actually gained 0.37% on the following trading day.

Though SGD/NZD is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for SGD/NZD. Out of 18 times, SGDNZD closed higher 61.11% 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 50.00% with an average market move of -0.06%.


Market Conditions for SGDNZD as at Mar 27, 2020

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