NZDHKD closes lower for the 2nd day in a row
New Zealand Dollar/Hong Kong Dollar (NZDHKD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NZDHKD ended the week 2.84% higher at 4.7300 after losing 171 pips (-0.36%) today on high volume. Closing below Thursday's low at 4.7327, NZD/HKD confirmed its breakout through the prior session low after trading up to 164 pips below it intraday.
Daily Candlestick Chart (NZDHKD as at May 22, 2020):
Friday's trading range has been 382 pips (0.8%), that's far below the last trading month's daily average range of 599 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 NZDHKD.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on April 3rd, NZDHKD gained 1.20% on the following trading day.
Prices are trading close to the key technical resistance level at 4.7724 (R1).
The forex pair shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 4.7723 where further buy stops could get triggered. Further buying might move prices higher should the market test April's nearby high at 4.7880.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NZD/HKD. Out of 329 times, NZDHKD closed higher 51.06% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more