CADHKD pushes through key technical resistance level
Canadian Dollar/Hong Kong Dollar (CADHKD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CADHKD ended Thursday at 5.5294 gaining 667 pips (1.22%). Closing above Wednesday's high at 5.4679, the currency confirmed its breakout through the previous session high after trading up to 658 pips above it intraday.
Daily Candlestick Chart (CADHKD as at Mar 26, 2020):
Thursday's trading range has been 1024 pips (1.87%), that's slightly above the last trading month's daily average range of 822 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CADHKD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 5.4816 (now S1), which is likely to act as support going forward. The last time this happened on February 21st, CADHKD actually lost -0.42% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for CAD/HKD. Out of 612 times, CADHKD closed lower 55.72% 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 55.56% with an average market move of -0.19%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more