HKDSGD finds buyers around 0.1790 for the third day in a row
Hong Kong Dollar/Singapore Dollar (HKDSGD) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
HKDSGD ended Monday at 0.1794 flat. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HKDSGD as at Jul 13, 2020):
Monday's trading range has been 6 pips (0.33%), that's slightly below the last trading month's daily average range of 7 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HKDSGD. Prices continued to consolidate within a tight trading range between 0.1790 and 0.1800 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on April 30th, HKDSGD gained 0.38% on the following trading day.
The forex pair found buyers again today around 0.1790 for the third trading day in a row after having found demand at 0.1793 in the prior session and at 0.1793 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 0.1800 where further buy stops might get activated. With prices trading close to this year's low at 0.0000, downside momentum could accelerate should the FX pair break out to new lows for the year. Trading close to May's high at 0.1843 we might see further upside momentum if potential buy stops at the level get triggered. Further selling could move prices lower should the market test June's nearby low at 0.1781.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for HKD/SGD. Out of 677 times, HKDSGD closed lower 46.53% 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 nine trading days, showing a win rate of 53.32% with an average market move of -0.03%.