USDSGD unable to break through key resistance level
US Dollar/Singapore Dollar (USDSGD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, USDSGD ended the month -1.35% lower at 1.3936 after edging higher 1 pip (0.01%) today on low volume. Trading 39 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (USDSGD as at Jun 30, 2020):
Tuesday's trading range has been 48 pips (0.34%), that's below the last trading month's daily average range of 68 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for USDSGD.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Shooting Star showed up on September 3, 2019, USDSGD lost -0.44% on the following trading day.
Unable to break through the key technical resistance level at 1.3964 (R1), the currency closed below it after spiking up to 1.3976 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the nearby swing high at 1.3994 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 1.3904 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Its common bearish interpretation has been confirmed for USD/SGD. Out of 54 times, USDSGD closed lower 53.70% 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 61.11% with an average market move of -0.17%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more