HKDNZD closes below its opening price unable to hold early session gains
Hong Kong Dollar/New Zealand Dollar (HKDNZD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, HKDNZD finished Thursday at 0.2164 tanking 41 pips (-1.86%). Trading 27 pips higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Wednesday's low at 0.2181, the FX pair confirmed its breakout through the previous session low after trading up to 27 pips below it intraday.
Daily Candlestick Chart (HKDNZD as at Mar 26, 2020):
Thursday's trading range has been 78 pips (3.54%), that's slightly above the last trading month's daily average range of 62 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for HKDNZD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 0.2144 (S1). After having been unable to move above 0.2228 in the prior session, the currency ran into sellers again around the same price level today, failing to move higher than 0.2232. The last time this happened on Monday, HKDNZD lost -1.82% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for HKD/NZD. Out of 24 times, HKDNZD closed lower 62.50% of the time on the next trading day after the market condition occurred.