SGDUSD closes lower for the 3rd day in a row
Singapore Dollar/US Dollar (SGDUSD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SGDUSD finished the week -0.22% lower at 0.7182 after losing 15 pips (-0.21%) today on low volume. Today's close at 0.7182 marks the lowest recorded closing price since May 18, 2017. Closing below Thursday's low at 0.7194, the pair confirmed its breakout through the prior session low after trading up to 15 pips below it intraday.
Daily Candlestick Chart (SGDUSD as at Feb 14, 2020):
Friday's trading range has been 23 pips (0.32%), that's slightly below the last trading month's daily average range of 26 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SGDUSD.
One bearish candlestick pattern matches today's price action, the Black Candle.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2019's low at 0.7173 is within reach and we might see further downside momentum should SGD/USD break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for SGD/USD. Out of 154 times, SGDUSD closed higher 53.25% 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 53.90% with an average market move of 0.06%.