HKDCHF breaks above 200-day moving average for the first time since November 29, 2019
Hong Kong Dollar/Swiss Franc (HKDCHF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HKDCHF finished the week 0.4% higher at 0.1264 after gaining 3 pips (0.24%) today on low volume. Today's close at 0.1264 marks the highest recorded closing price since December 6, 2019. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (HKDCHF as at Feb 14, 2020):
Friday's trading range has been 5 pips (0.4%), that's slightly below the last trading month's daily average range of 6 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HKDCHF.
One bullish candlestick pattern matches today's price action, the White Candle.
The forex pair managed to close above the 200-day moving average at 0.1262 for the first time since November 29, 2019. When this moving average was crossed above the last time on November 21, 2019, HKDCHF gained 0.39% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for HKD/CHF. Out of 59 times, HKDCHF closed higher 57.63% 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 47.46% with an average market move of 0.28%.