HKDEUR pushes through Tuesday's high
Hong Kong Dollar/Euro (HKDEUR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HKDEUR finished Wednesday at 0.1092 gaining 3 pips (0.28%). Closing above Tuesday's high at 0.1090, the pair confirmed its breakout through the previous session high after trading up to 5 pips above it intraday.
Daily Candlestick Chart (HKDEUR as at Sep 16, 2020):
Wednesday's trading range has been 9 pips (0.83%), 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 HKDEUR.
The market managed to close back above the 20-day moving average at 0.1090 for the first time since September 10th. When this moving average was crossed above the last time on September 4th, HKDEUR gained 0.18% on the following trading day. Prices are trading close to the key technical resistance level at 0.1097 (R1).
Although the currency is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 0.1098 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 0.1084 where further sell stops might get activated. Further buying could move prices higher should the market test August's nearby high at 0.1103.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for HKD/EUR. Out of 159 times, HKDEUR closed higher 48.43% 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 51.57% with an average market move of 0.08%.