SGDNZD closes above its opening price after recovering from early selling pressure
Singapore Dollar/New Zealand Dollar (SGDNZD) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SGDNZD finished the week -0.36% lower at 1.0936 after gaining 2 pips (0.02%) today. Trading up to 15 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SGDNZD as at Jul 10, 2020):
Friday's trading range has been 43 pips (0.39%), that's far below the last trading month's daily average range of 84 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SGDNZD. Prices continued to consolidate within a tight trading range between 1.0900 and 1.0971 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 1.0900 (S1). After having been unable to move above 1.0954 in the prior session, SGD/NZD ran into sellers again around the same price level today, failing to move higher than 1.0959. The last time this happened on Tuesday, SGDNZD lost -0.13% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 1.0900 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for SGD/NZD. Out of 453 times, SGDNZD closed lower 52.54% 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 52.32% with an average market move of -0.07%.