CADHKD breaks below Thursday's low
Canadian Dollar/Hong Kong Dollar (CADHKD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CADHKD finished the week 0.84% higher at 5.5394 after losing 183 pips (-0.33%) today. Closing below Thursday's low at 5.5509, the FX pair confirmed its breakout through the prior session low after trading up to 303 pips below it intraday.
Daily Candlestick Chart (CADHKD as at May 22, 2020):
Friday's trading range has been 414 pips (0.75%), that's slightly below the last trading month's daily average range of 463 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CADHKD.
After trading as low as 5.5206 during the day, the pair found support at the 20-day moving average at 5.5320. The last time this happened on April 15th, CADHKD gained 0.19% 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 5.5896 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 5.4904 where further sell stops might get activated. Further buying could move prices higher should the market test April's close-by high at 5.5963. As prices are trading close to May's low at 5.4697, downside momentum might accelerate should the currency mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for CAD/HKD. Out of 544 times, CADHKD closed higher 54.04% of the time on the next trading day after the market condition occurred.
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