CADHKD closes within previous day's range after lackluster session
Canadian Dollar/Hong Kong Dollar (CADHKD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CADHKD finished the month 1.23% higher at 5.7792 after gaining 50 pips (0.09%) today on high volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CADHKD as at Jul 31, 2020):
Friday's trading range has been 278 pips (0.48%), that's below the last trading month's daily average range of 337 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 5.8141 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 5.7579 where further sell stops could get triggered. Further buying might move prices higher should the market test June's nearby high at 5.8202.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for CAD/HKD. Out of 781 times, CADHKD closed lower 50.32% 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 53.27% with an average market move of -0.14%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more