NZDHKD finds buyers again around 4.4802
New Zealand Dollar/Hong Kong Dollar (NZDHKD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, NZDHKD finished Thursday at 4.6209 gaining 848 pips (1.87%). Trading up to 559 pips lower after the open, the currency managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 4.5849, the forex pair confirmed its breakout through the prior session high after trading up to 577 pips above it intraday.
Daily Candlestick Chart (NZDHKD as at Mar 26, 2020):
Thursday's trading range has been 1624 pips (3.58%), that's slightly above the last trading month's daily average range of 1326 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for NZDHKD.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 4.6635 (R1). After having been unable to move lower than 4.4879 in the previous session, NZD/HKD found buyers again around the same price level today at 4.4802. The last time this happened on Monday, NZDHKD gained 1.88% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for NZD/HKD. Out of 30 times, NZDHKD closed higher 60.00% 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 three trading days, showing a win rate of 53.33% with an average market move of 0.09%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more