SGDNZD closes within previous day's range after lackluster session
Singapore Dollar/New Zealand Dollar (SGDNZD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
SGDNZD finished the week -2.52% lower at 1.1507 after losing 18 pips (-0.16%) today. Today's close at 1.1507 marks the lowest recorded closing price since March 11th. Trading 28 pips higher after the open, SGD/NZD was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 14th, SGDNZD actually gained 0.81% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SGDNZD as at May 22, 2020):
Friday's trading range has been 63 pips (0.55%), that's far below the last trading month's daily average range of 115 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 slightly lower than usual for SGDNZD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Last Engulfing Bottom Pattern which are both known as bullish patterns.
After trading as low as 1.1492 during the day, the currency found support at the 100-day moving average at 1.1498. Prices are trading close to the key technical resistance level at 1.1579 (R1). The FX pair found buyers again today around 1.1492 for the third trading day in a row after having found demand at 1.1500 in the previous session and at 1.1497 two days ago.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for SGD/NZD. Out of 87 times, SGDNZD closed lower 52.87% 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 10 trading days, showing a win rate of 62.07% with an average market move of -0.53%.