NZDHKD finds buyers at key support level
New Zealand Dollar/Hong Kong Dollar (NZDHKD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NZDHKD finished the week 0.52% higher at 4.9985 after edging lower 21 pips (-0.04%) today on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NZDHKD as at Feb 14, 2020):
Friday's trading range has been 157 pips (0.31%), that's far below the last trading month's daily average range of 326 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 higher than usual for NZDHKD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bullish Hikkake Pattern showed up on February 6th, NZDHKD actually lost -0.83% on the following trading day.
After trading down to 4.9893 earlier during the day, the market bounced off the key technical support level at 4.9969 (S1). The failure to close below the support could increase that levels importance as support going forward.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
As prices are trading close to February's high at 5.0493, upside momentum might accelerate should the forex pair mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for NZD/HKD. Out of 564 times, NZDHKD closed higher 55.67% 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 54.96% with an average market move of 0.12%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more