HKDEUR closes within previous day's range after lackluster session
Hong Kong Dollar/Euro (HKDEUR) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
HKDEUR ended the week 0.09% higher at 0.1090 after gaining 1 pip (0.09%) today. Trading up to 2 pips lower after the open, HKD/EUR managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, HKDEUR gained 0.28% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HKDEUR as at Sep 18, 2020):
Friday's trading range has been 4 pips (0.37%), 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 HKDEUR.
The FX pair managed to close back above the 20-day moving average at 0.1090.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 0.1084 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for HKD/EUR. Out of 691 times, HKDEUR closed lower 49.06% 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 four trading days, showing a win rate of 50.51% with an average market move of -0.03%.