HKDNZD closes below its opening price unable to hold early session gains
Hong Kong Dollar/New Zealand Dollar (HKDNZD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
HKDNZD ended the month -3.85% lower at 0.1999 after losing 10 pips (-0.5%) today on low volume. Trading 10 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 23rd, HKDNZD actually gained 1.26% on the following trading day. Closing below Monday's low at 0.2002, the currency confirmed its breakout through the prior session low after trading up to 5 pips below it intraday.
Daily Candlestick Chart (HKDNZD as at Jun 30, 2020):
Tuesday's trading range has been 24 pips (1.19%), that's slightly below the last trading month's daily average range of 25 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for HKDNZD.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.
After trading as low as 0.1997 during the day, the pair found support at the 20-day moving average at 0.1997.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to June's low at 0.1960, downside momentum might accelerate should the forex pair mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for HKD/NZD. Out of 131 times, HKDNZD closed higher 48.09% 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 three trading days, showing a win rate of 54.20% with an average market move of 0.04%.