HKDEUR closes above its opening price after recovering from early selling pressure
Hong Kong Dollar/Euro (HKDEUR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HKDEUR ended the week 1.11% higher at 0.1189 after gaining 1 pip (0.08%) today. Today's close at 0.1189 marks the highest recorded closing price since April 21, 2017. Trading up to 3 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, HKDEUR lost 0.00% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (HKDEUR as at Feb 14, 2020):
Friday's trading range has been 4 pips (0.34%), that's slightly below the last trading month's daily average range of 5 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for HKDEUR.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 0.1171.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for HKD/EUR. Out of 138 times, HKDEUR closed lower 54.35% 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 53.62% with an average market move of -0.22%.