CADHKD rises to highest close since March 2nd
Canadian Dollar/Hong Kong Dollar (CADHKD) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CADHKD finished Tuesday at 5.8188 gaining 317 pips (0.55%). Today's close at 5.8188 marks the highest recorded closing price since March 2nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 5.7926, CAD/HKD confirmed its breakout through the prior session high after trading up to 266 pips above it intraday.
Daily Candlestick Chart (CADHKD as at Aug 04, 2020):
Tuesday's trading range has been 444 pips (0.77%), that's above the last trading month's daily average range of 347 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 slightly 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 5.8057 (now S1), which is likely to act as support going forward. The last time this happened on July 29th, CADHKD actually lost -0.65% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to June's high at 5.8202 we could see further upside momentum if potential buy stops at the level get activated.
Among the eight 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 616 times, CADHKD closed lower 55.84% 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 55.03% with an average market move of -0.16%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.55% and USDCHF closing -0.49% lower. On the flipside the best performers have been AUDUSD closing 0.53% higher and EURUSD gaining 0.35%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been CHFZAR surging 1.54% and EURZAR closing 1.39% higher. The worst performers of the day have been ZARJPY tanking -1.14% and USDCZK closing -0.92% lower. Read more