HKDCAD closes lower for the 3rd day in a row
Hong Kong Dollar/Canadian Dollar (HKDCAD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, HKDCAD ended Thursday at 0.1809 losing 22 pips (-1.2%). Closing below Wednesday's low at 0.1829, the FX pair confirmed its breakout through the prior session low after trading up to 22 pips below it intraday.
Daily Candlestick Chart (HKDCAD as at Mar 26, 2020):
Thursday's trading range has been 34 pips (1.86%), that's slightly above the last trading month's daily average range of 27 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 HKDCAD.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 0.1824 (now R1), which is likely to act as resistance going forward. The last time this happened on February 21st, HKDCAD actually gained 0.41% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for HKD/CAD. Out of 545 times, HKDCAD closed higher 52.11% 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 53.21% with an average market move of 0.18%.