USDSGD closes within prior day's range
US Dollar/Singapore Dollar (USDSGD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
USDSGD finished the month -1.37% lower at 1.3745 after gaining 23 pips (0.17%) today on high volume. Trading up to 38 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, USDSGD actually lost -0.38% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (USDSGD as at Jul 31, 2020):
Friday's trading range has been 71 pips (0.52%), that's far above the last trading month's daily average range of 54 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for USDSGD.
One bullish candlestick pattern matches today's price action, the Hammer.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 1.3860.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for USD/SGD. Out of 14 times, USDSGD closed lower 64.29% 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 two trading days, showing a win rate of 64.29% with an average market move of -0.06%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more