CHFHKD finds buyers again around 8.4716
Swiss Franc/Hong Kong Dollar (CHFHKD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CHFHKD finished the month 3.71% higher at 8.4855 after losing 408 pips (-0.48%) today on high volume. Trading 303 pips higher after the open, the pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 16th, CHFHKD actually gained 0.78% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHFHKD as at Jul 31, 2020):
Friday's trading range has been 858 pips (1.01%), that's far above the last trading month's daily average range of 550 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CHFHKD.
Even with a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle.
After having been unable to move lower than 8.4687 in the prior session, the forex pair found buyers again around the same price level today at 8.4716.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 8.3203.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CHF/HKD. Out of 427 times, CHFHKD closed higher 54.10% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 47.31% with an average market move of -0.06%.
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