EURHKD rallies 1.38% closing 1163 pips higher

Euro/Hong Kong Dollar (EURHKD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team


EURHKD rallies 1.38% closing 1163 pips higher
EURHKD breaks back above 50-day moving average
EURHKD dominated by bulls lifting the market higher throughout the day
EURHKD closes higher for the 4th day in a row
EURHKD pushes through Wednesday's high


Moving higher for the 4th day in a row, EURHKD ended Thursday at 8.5524 surging 1163 pips (1.38%). This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on March 9th, EURHKD actually lost -1.44% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 8.4453, the FX pair confirmed its breakout through the prior session high after trading up to 1276 pips above it intraday.

Daily Candlestick Chart (EURHKD as at Mar 26, 2020):

Daily technical analysis candlestick chart for Euro/Hong Kong Dollar (EURHKD) as at Mar 26, 2020

Thursday's trading range has been 1452 pips (1.72%), that's slightly above the last trading month's daily average range of 1334 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for EURHKD.

One bullish candlestick pattern matches today's price action, the White Candle.

The forex pair managed to close back above the 50-day moving average at 8.5460 for the first time since March 16th. Prices are trading close to the key technical resistance level at 8.6389 (R1).

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for EUR/HKD. Out of 84 times, EURHKD closed lower 65.48% 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 58.33% with an average market move of -0.24%.

With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more

Market Conditions for EURHKD as at Mar 26, 2020

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