HKDSGD runs into sellers again around 0.1872
Hong Kong Dollar/Singapore Dollar (HKDSGD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
HKDSGD finished Thursday at 0.1846 tanking 21 pips (-1.12%). This is the biggest single-day loss in over three years. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 0.1863, the currency confirmed its breakout through the prior session low after trading up to 18 pips below it intraday.
Daily Candlestick Chart (HKDSGD as at Mar 26, 2020):
Thursday's trading range has been 27 pips (1.45%), that's far above the last trading month's daily average range of 16 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for HKDSGD.
In spite of a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on Tuesday, HKDSGD actually gained 0.11% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Black Candle.
After having been unable to move above 0.1872 in the prior session, the FX pair ran into sellers again around the same price level today, failing to move higher than 0.1872.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for HKD/SGD. Out of 119 times, HKDSGD closed higher 52.10% 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 10 trading days, showing a win rate of 51.26% with an average market move of 0.15%.