SGDUSD dominated by bulls lifting the market higher throughout the day
Singapore Dollar/US Dollar (SGDUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
SGDUSD finished Thursday at 0.6987 surging 78 pips (1.13%). This is the biggest single-day gain in over three years. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 0.6923, the forex pair confirmed its breakout through the prior session high after trading up to 68 pips above it intraday.
Daily Candlestick Chart (SGDUSD as at Mar 26, 2020):
Thursday's trading range has been 100 pips (1.45%), that's far above the last trading month's daily average range of 61 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SGDUSD.
Notwithstanding a weak opening SGD/USD managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move lower than 0.6890 in the prior session, the market found buyers again around the same price level today at 0.6891. The last time this happened on March 9th, SGDUSD actually lost -0.50% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for SGD/USD. Out of 133 times, SGDUSD closed higher 55.64% 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 56.39% with an average market move of 0.10%.