CHFHKD unable to break through key resistance level
Swiss Franc/Hong Kong Dollar (CHFHKD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CHFHKD finished Wednesday at 8.5220 losing 124 pips (-0.15%). Trading 261 pips higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 8.5265, the FX pair confirmed its breakout through the previous session low after trading up to 198 pips below it intraday.
Daily Candlestick Chart (CHFHKD as at Sep 16, 2020):
Wednesday's trading range has been 520 pips (0.61%), that's slightly below the last trading month's daily average range of 581 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHFHKD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on August 27th, CHFHKD actually gained 0.54% on the following trading day.
After trading as low as 8.5067 during the day, the currency found support at the 20-day moving average at 8.5173. Unable to break through the key technical resistance level at 8.5531 (R1), CHF/HKD closed below it after spiking up to 8.5587 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. The pair ran into sellers again today around 8.5587 for the third trading day in a row after having found sellers at 8.5620 in the prior session and at 8.5556 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 8.5620 where further buy stops might get triggered. With prices trading close to this year's high at 8.6124, upside momentum could accelerate should the forex pair be able to break out to new highs for the year.
Among the eight 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 534 times, CHFHKD closed lower 53.56% 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 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more