AUDHKD rises to highest close since February 26th
Australian Dollar/Hong Kong Dollar (AUDHKD) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
AUDHKD finished Tuesday at 5.6272 edging higher 40 pips (0.07%). Today's close at 5.6272 marks the highest recorded closing price since February 26th. Trading up to 254 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AUDHKD as at Apr 16, 2019):
Tuesday's trading range has been 330 pips (0.59%), that's slightly below the last trading month's daily average range of 405 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AUDHKD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Hikkake Pattern showed up on March 5th, AUDHKD actually lost -0.74% on the following trading day.
After trading as low as 5.5979 during the day, the pair found support at the 100-day moving average at 5.5989. Prices are trading close to the key technical resistance level at 5.6505 (R1). After having been unable to move above 5.6328 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 5.6309.
While the FX pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 5.6409 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for AUD/HKD. Out of 122 times, AUDHKD closed higher 62.30% 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 57.38% with an average market move of 0.12%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.4% and EURUSD closing -0.2% lower. On the flipside the best performers have been USDCHF closing 0.38% higher and AUDUSD gaining 0.03%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been TRYJPY surging 0.57% and CADCHF closing 0.52% higher. The worst performers of the day have been EURTRY tanking -0.82% and USDTRY closing -0.63% lower. Read more