CADHKD finds buyers around 5.6571 for the third day in a row
Canadian Dollar/Hong Kong Dollar (CADHKD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CADHKD ended the month 1.42% higher at 5.7090 after gaining 355 pips (0.63%) today. Closing above Monday's high at 5.6790, the FX pair confirmed its breakout through the previous session high after trading up to 325 pips above it intraday.
Daily Candlestick Chart (CADHKD as at Jun 30, 2020):
Tuesday's trading range has been 544 pips (0.96%), that's above the last trading month's daily average range of 453 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for CADHKD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Prices are trading close to the key technical resistance level at 5.7387 (R1). CAD/HKD found buyers again today around 5.6571 for the third trading day in a row after having found demand at 5.6551 in the prior session and at 5.6507 two days ago. The last time this happened on June 22nd, CADHKD actually lost -0.21% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 5.7467 where further buy stops could get activated.
Among the 10 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. Although it is usually interpreted as bullish, it has actually shown to be bearish for CAD/HKD. Out of 617 times, CADHKD closed lower 55.75% 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 55.43% with an average market move of -0.17%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more