SGDUSD crashes, losing 37 pips (-0.52%) within a single day
Singapore Dollar/US Dollar (SGDUSD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SGDUSD ended the week 0.14% higher at 0.7018 after tanking 37 pips (-0.52%) today. This is the biggest single-day loss in over a month. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 0.7052, the forex pair confirmed its breakout through the previous session low after trading up to 39 pips below it intraday.
Daily Candlestick Chart (SGDUSD as at May 22, 2020):
Friday's trading range has been 48 pips (0.68%), that's far above the last trading month's daily average range of 34 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SGDUSD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on March 23rd, SGDUSD gained 0.99% on the following trading day.
After trading as low as 0.7013 during the day, the market found support at the 50-day moving average at 0.7017. SGD/USD closed back below the 20-day moving average at 0.7054 for the first time since May 15th.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for SGD/USD. Out of 123 times, SGDUSD closed higher 57.72% of the time on the next trading day after the market condition occurred.