SGDUSD closes within prior day's range
Singapore Dollar/US Dollar (SGDUSD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
SGDUSD ended the month 1.38% higher at 0.7275 after losing 13 pips (-0.18%) today on high volume. Trading 20 pips higher after the open, SGD/USD was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 9th, SGDUSD actually gained 0.10% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SGDUSD as at Jul 31, 2020):
Friday's trading range has been 38 pips (0.52%), that's far above the last trading month's daily average range of 28 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SGDUSD.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 0.7215.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Its common bearish interpretation has been confirmed for SGD/USD. Out of 70 times, SGDUSD closed lower 58.57% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.43% with an average market move of -0.11%.