AUDHKD breaks below Thursday's low
Australian Dollar/Hong Kong Dollar (AUDHKD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AUDHKD ended the week 1.98% higher at 5.0701 after losing 214 pips (-0.42%) today on high volume. Closing below Thursday's low at 5.0757, the currency confirmed its breakout through the previous session low after trading up to 297 pips below it intraday.
Daily Candlestick Chart (AUDHKD as at May 22, 2020):
Friday's trading range has been 502 pips (0.99%), that's below the last trading month's daily average range of 623 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AUDHKD.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on May 14th, AUDHKD actually lost -0.75% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 5.1276 where further buy stops could get triggered. Trading close to March's high at 5.1951 we might see further upside momentum if potential buy stops at the level get activated.
Among the four 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 125 times, AUDHKD closed higher 62.40% 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 52.80% with an average market move of 0.05%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more