EURHKD finds buyers again around 8.4530
Euro/Hong Kong Dollar (EURHKD) Technical Analysis Report for Apr 01, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EURHKD ended Wednesday at 8.4990 losing 536 pips (-0.63%) on low volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EURHKD as at Apr 01, 2020):
Wednesday's trading range has been 1046 pips (1.22%), that's below the last trading month's daily average range of 1388 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EURHKD.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 8.4095 (S1). The forex pair closed back below the 50-day moving average at 8.5417 for the first time since March 25th. When this moving average was crossed below the last time on March 17th, EURHKD lost -0.70% on the following trading day. After having been unable to move lower than 8.4714 in the prior session, the currency found buyers again around the same price level today at 8.4530.
Though EUR/HKD is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EUR/HKD. Out of 113 times, EURHKD closed higher 52.21% 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 57.52% with an average market move of 0.17%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are AUDUSD losing -1.03% and NZDUSD closing -0.82% lower. On the flipside the best performers have been USDCAD closing 0.92% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDMXN surging 2.37% and USDZAR closing 2.12% higher. The worst performers of the day have been ZARJPY tanking -2.49% and TRYJPY closing -1.72% lower. Read more