HKDSGD pops to highest close since December 17, 2018
Hong Kong Dollar/Singapore Dollar (HKDSGD) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HKDSGD ended the week 1.09% higher at 0.1755 after surging 6 pips (0.34%) today. Today's close at 0.1755 marks the highest recorded closing price since December 17, 2018.
Daily Candlestick Chart (HKDSGD as at May 17, 2019):
Friday's trading range has been 9 pips (0.51%), that's far above the last trading month's daily average range of 5 pips. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for HKDSGD.
One bullish candlestick pattern matches today's price action, the White Candle.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 0.1738.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for HKD/SGD. Out of 551 times, HKDSGD closed lower 50.09% 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 54.81% with an average market move of -0.08%.