AUDHKD closes within previous day's range
Australian Dollar/Hong Kong Dollar (AUDHKD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AUDHKD ended the month 3.47% higher at 5.5361 after losing 398 pips (-0.71%) today on high volume. 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 Jul 31, 2020):
Friday's trading range has been 725 pips (1.3%), that's far above the last trading month's daily average range of 501 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUDHKD.
In spite of a strong opening the pair closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on July 23rd, AUDHKD actually gained 0.11% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 5.5187 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 5.5187 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for AUD/HKD. Out of 538 times, AUDHKD closed higher 57.06% 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 three trading days, showing a win rate of 50.93% with an average market move of 0.02%.
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