CHFHKD still stuck within tight trading range
Swiss Franc/Hong Kong Dollar (CHFHKD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
CHFHKD finished the month 1.44% higher at 8.1817 after gaining 337 pips (0.41%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CHFHKD as at Jun 30, 2020):
Tuesday's trading range has been 609 pips (0.75%), that's slightly above the last trading month's daily average range of 593 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 lower than usual for CHFHKD. Prices continued to consolidate within a tight trading range between 8.1304 and 8.2155 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 8.1893 (R1), the FX pair closed below it after spiking up to 8.1913 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 19th, CHFHKD actually gained 0.50% on the following trading day. After having been unable to move lower than 8.1370 in the prior session, the pair found buyers again around the same price level today at 8.1304.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 8.2083 where further buy stops might get activated. As prices are trading close to June's high at 8.2659, upside momentum could speed up should the currency mark new highs 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 Resistance R1" stand out. Its common bearish interpretation has been confirmed for CHF/HKD. Out of 536 times, CHFHKD closed lower 53.36% of the time on the next trading day after the market condition occurred.
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