NZDHKD closes above its opening price after recovering from early selling pressure
New Zealand Dollar/Hong Kong Dollar (NZDHKD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
NZDHKD finished the month 4.01% higher at 5.0028 after gaining 264 pips (0.53%) today on low volume. Trading up to 248 pips lower after the open, the currency managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 23rd, NZDHKD actually lost -1.25% on the following trading day. Closing above Monday's high at 4.9938, the pair confirmed its breakout through the prior session high after trading up to 142 pips above it intraday.
Daily Candlestick Chart (NZDHKD as at Jun 30, 2020):
Tuesday's trading range has been 593 pips (1.19%), that's slightly below the last trading month's daily average range of 625 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower 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.
After spiking up to 5.0080 during the day, NZD/HKD found resistance at the 20-day moving average at 5.0071.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for NZD/HKD. Out of 130 times, NZDHKD closed lower 50.77% 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 three trading days, showing a win rate of 55.38% with an average market move of -0.02%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more