HKDSGD pushes through Monday's high
Hong Kong Dollar/Singapore Dollar (HKDSGD) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HKDSGD ended Tuesday at 0.1727 gaining 1 pip (0.06%). Closing above Monday's high at 0.1726, the forex pair confirmed its breakout through the prior session high after trading up to 2 pips above it intraday.
Daily Candlestick Chart (HKDSGD as at Apr 16, 2019):
Tuesday's trading range has been 3 pips (0.17%), that's below the last trading month's daily average range of 5 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HKDSGD.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 0.1729 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 0.1731 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 0.1724 where further sell stops might get triggered. Trading close to February's high at 0.1735 we could see further upside momentum if potential buy stops at the level get activated. As prices are trading close to April's low at 0.1723, downside momentum might speed up should the market mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for HKD/SGD. Out of 537 times, HKDSGD closed lower 53.26% 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 10 trading days, showing a win rate of 53.82% with an average market move of -0.04%.