HKDCHF pushes through Friday's high
Hong Kong Dollar/Swiss Franc (HKDCHF) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HKDCHF finished Monday at 0.1180 gaining 4 pips (0.34%). Closing above Friday's high at 0.1176, the currency confirmed its breakout through the prior session high after trading up to 7 pips above it intraday.
Daily Candlestick Chart (HKDCHF as at Sep 21, 2020):
Monday's trading range has been 10 pips (0.85%), that's above the last trading month's daily average range of 8 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HKDCHF.
Buyers managed to take out the key technical resistance level at 0.1179 (now S1), which is likely to act as support going forward. After spiking up to 0.1183 during the day, HKD/CHF found resistance at the 50-day moving average at 0.1181. The last time this happened on March 31st, HKDCHF actually gained 0.48% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to September's high at 0.1187, upside momentum might accelerate should the forex pair mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for HKD/CHF. Out of 98 times, HKDCHF 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 two trading days, showing a win rate of 55.10% with an average market move of 0.01%.