HKDCAD closes within prior day's range
Hong Kong Dollar/Canadian Dollar (HKDCAD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
HKDCAD finished the month -1.26% lower at 0.1730 after losing 2 pips (-0.12%) today on high volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HKDCAD as at Jul 31, 2020):
Friday's trading range has been 9 pips (0.52%), that's slightly below the last trading month's daily average range of 10 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HKDCAD. Prices continued to consolidate within a tight trading range between 0.1720 and 0.1737 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 0.1737 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 0.1722 where further sell stops could get activated. Further selling might move prices lower should the market test June's nearby low at 0.1718.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for HKD/CAD. Out of 678 times, HKDCAD closed higher 50.00% 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 52.36% with an average market move of 0.16%.