SGDUSD closes above its opening price after recovering from early selling pressure
Singapore Dollar/US Dollar (SGDUSD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
SGDUSD finished the month 1.37% higher at 0.7176 after flat today on low volume. Trading up to 20 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 previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SGDUSD as at Jun 30, 2020):
Tuesday's trading range has been 25 pips (0.35%), that's below the last trading month's daily average range of 35 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for SGDUSD.
Three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Takuri Line showed up on March 25th, SGDUSD gained 1.13% on the following trading day.
After trading down to 0.7155 earlier during the day, the FX pair bounced off the key technical support level at 0.7169 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 0.7184 in the previous session, the forex pair ran into sellers again around the same price level today, failing to move higher than 0.7180.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 0.7192 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 0.7146 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for SGD/USD. Out of 53 times, SGDUSD closed higher 58.49% 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 62.26% with an average market move of 0.10%.