HKDCHF plunges -1.51% closing 19 pips lower
Hong Kong Dollar/Swiss Franc (HKDCHF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, HKDCHF ended Thursday at 0.1242 tanking 19 pips (-1.51%). This is the biggest single-day loss in over three years. The last time we've seen such an unusually strong single-day loss on March 9th, HKDCHF actually gained 1.60% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 0.1258, HKD/CHF confirmed its breakout through the previous session low after trading up to 19 pips below it intraday.
Daily Candlestick Chart (HKDCHF as at Mar 26, 2020):
Thursday's trading range has been 22 pips (1.74%), that's above the last trading month's daily average range of 18 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for HKDCHF.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 0.1231 (S1). The FX pair closed back below the 200-day moving average at 0.1257 for the first time since March 18th.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for HKD/CHF. Out of 70 times, HKDCHF closed higher 57.14% 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 54.29% with an average market move of 0.18%.