HKDEUR closes within previous day's range after lackluster session
Hong Kong Dollar/Euro (HKDEUR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
HKDEUR ended the month -1.12% lower at 0.1149 after edging higher 1 pip (0.09%) today. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HKDEUR as at Jun 30, 2020):
Tuesday's trading range has been 7 pips (0.61%), that's below the last trading month's daily average range of 10 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 HKDEUR.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 17th, HKDEUR gained 0.35% on the following trading day.
While the FX pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 0.1153 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 0.1143 where further sell stops could get activated. As prices are trading close to June's high at 0.1162, upside momentum might accelerate should the market mark new highs for the month. As prices are trading close to June's low at 0.1130, downside momentum could speed up should the forex pair mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for HKD/EUR. Out of 158 times, HKDEUR closed lower 51.27% of the time on the next trading day after the market condition occurred.