EURHKD closes lower for the 3rd day in a row
Euro/Hong Kong Dollar (EURHKD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EURHKD ended the week -1.03% lower at 8.4135 after losing 63 pips (-0.07%) today. Today's close at 8.4135 marks the lowest recorded closing price since April 21, 2017. Trading 152 pips higher after the open, EUR/HKD was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 8.4141, the market confirmed its breakout through the prior session low after trading up to 46 pips below it intraday.
Daily Candlestick Chart (EURHKD as at Feb 14, 2020):
Friday's trading range has been 260 pips (0.31%), that's below the last trading month's daily average range of 346 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EURHKD.
After having been unable to move lower than 8.4141 in the previous session, the FX pair found buyers again around the same price level today at 8.4095. The last time this happened on February 4th, EURHKD actually lost -0.45% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 8.5432.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EUR/HKD. Out of 148 times, EURHKD closed higher 54.73% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more