HKDCHF closes higher for the 2nd day in a row
Hong Kong Dollar/Swiss Franc (HKDCHF) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HKDCHF ended the week -0.08% lower at 0.1252 after gaining 1 pip (0.08%) today on high volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HKDCHF as at May 22, 2020):
Friday's trading range has been 5 pips (0.4%), that's far below the last trading month's daily average range of 8 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HKDCHF.
Unable to break through the key technical resistance level at 0.1255 (R1), the pair closed below it after spiking up to 0.1255 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Tuesday, HKDCHF lost -0.64% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 0.1259 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 0.1248 where further sell stops could get triggered. Further buying might move prices higher should the market test April's nearby high at 0.1265.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for HKD/CHF. Out of 549 times, HKDCHF closed lower 52.46% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 49.36% with an average market move of -0.04%.