HKDSGD soars 0.49% closing 9 pips higher
Hong Kong Dollar/Singapore Dollar (HKDSGD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HKDSGD finished the week -0.27% lower at 0.1837 after surging 9 pips (0.49%) today. This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on April 21st, HKDSGD actually lost -0.32% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 0.1829, the forex pair confirmed its breakout through the prior session high after trading up to 10 pips above it intraday.
Daily Candlestick Chart (HKDSGD as at May 22, 2020):
Friday's trading range has been 13 pips (0.71%), that's slightly below the last trading month's daily average range of 555564 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HKDSGD. Prices continued to consolidate within a tight trading range between 0.1822 and 0.1843 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The FX pair managed to close back above the 20-day moving average at 0.1829 for the first time since May 15th. After spiking up to 0.1839 during the day, the pair found resistance at the 50-day moving average at 0.1838. HKD/SGD was bought again around 0.1826 after having seen lows at 0.1823, 0.1822 and 0.1824 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 0.1843 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 0.1822 where further sell stops could get activated. With prices trading close to this year's low at 0.0000, downside momentum might speed up should the market break out to new lows for the year. As prices are trading close to May's low at 0.1819, downside momentum could accelerate should the currency mark new lows for the month.
Among the 19 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Its common bearish interpretation has been confirmed for HKD/SGD. Out of 86 times, HKDSGD closed lower 50.00% 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 61.63% with an average market move of -0.17%.