USDSGD breaks below Wednesday's low
US Dollar/Singapore Dollar (USDSGD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
USDSGD finished Thursday at 1.4313 tanking 161 pips (-1.11%). This is the biggest single-day loss in over three years. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 1.4445, the market confirmed its breakout through the previous session low after trading up to 141 pips below it intraday.
Daily Candlestick Chart (USDSGD as at Mar 26, 2020):
Thursday's trading range has been 207 pips (1.43%), that's far above the last trading month's daily average range of 123 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 USDSGD.
Despite a strong opening the currency closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move above 1.4514 in the previous session, USD/SGD ran into sellers again around the same price level today, missing to move higher than 1.4511. The last time this happened on Tuesday, USDSGD actually gained 0.08% on the following trading day.
The trend is clearly bullish, showing an intact uptrend 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 "Bearish Engulfing Candle" stand out. Its common bearish interpretation has been confirmed for USD/SGD. Out of 115 times, USDSGD closed lower 53.91% 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 57.39% with an average market move of -0.10%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more