AUDHKD runs into sellers again around 5.6926
Australian Dollar/Hong Kong Dollar (AUDHKD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, AUDHKD finished Wednesday at 5.6620 gaining 30 pips (0.05%) on high volume. Trading up to 185 pips lower after the open, the 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 failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AUDHKD as at Sep 16, 2020):
Wednesday's trading range has been 516 pips (0.91%), that's slightly below the last trading month's daily average range of 530 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUDHKD. Prices continued to consolidate within a tight trading range between 5.6173 and 5.6926 where it has been caught now for the whole last trading week.
Five candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Gravestone Doji showed up on March 25th, AUDHKD actually gained 1.74% on the following trading day.
Unable to break through the key technical resistance level at 5.6649 (R1), the FX pair closed below it after spiking up to 5.6926 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 5.6905 in the prior session, AUD/HKD ran into sellers again around the same price level today, failing to move higher than 5.6926.
Though the forex pair is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 5.7457, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Its common bearish interpretation has been confirmed for AUD/HKD. Out of 51 times, AUDHKD closed lower 52.94% 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 62.75% with an average market move of -0.55%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more