SGDNZD dominated by bulls lifting the market higher throughout the day
Singapore Dollar/New Zealand Dollar (SGDNZD) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team
SGDNZD ended Monday at 1.1011 surging 132 pips (1.21%) on high volume. This is the biggest single-day gain in over four months. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 1.0924, the FX pair confirmed its breakout through the previous session high after trading up to 104 pips above it intraday.
Daily Candlestick Chart (SGDNZD as at Sep 21, 2020):
Monday's trading range has been 168 pips (1.54%), that's far above the last trading month's daily average range of 86 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SGDNZD.
Despite a weak opening the currency managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The forex pair managed to close back above the 50-day moving average at 1.0984 for the first time since September 8th. When this moving average was crossed above the last time on September 8th, SGDNZD actually lost -0.66% on the following trading day. After having been unable to move lower than 1.0847 in the previous session, the pair found buyers again around the same price level today at 1.0860.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to September's high at 1.1050, upside momentum could speed up should the market mark new highs for the month.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for SGD/NZD. Out of 123 times, SGDNZD closed higher 52.03% 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 54.47% with an average market move of 0.02%.