CADHKD finds buyers again around 5.8530
Canadian Dollar/Hong Kong Dollar (CADHKD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CADHKD finished the week 0.43% higher at 5.8618 after gaining 76 pips (0.13%) today on low volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CADHKD as at Feb 14, 2020):
Friday's trading range has been 147 pips (0.25%), that's below the last trading month's daily average range of 217 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CADHKD.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
After having been unable to move lower than 5.8523 in the prior session, the pair found buyers again around the same price level today at 5.8530. The last time this happened on Monday, CADHKD gained 0.23% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 5.8710 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Its common bearish interpretation has been confirmed for CAD/HKD. Out of 686 times, CADHKD closed lower 51.75% 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 53.21% with an average market move of -0.09%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more