NZDHKD closes higher for the 4th day in a row


New Zealand Dollar/Hong Kong Dollar (NZDHKD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team

Highlights

NZDHKD finds buyers at key support level
NZDHKD closes higher for the 4th day in a row
NZDHKD closes within previous day's range

Overview

Moving higher for the 4th day in a row, NZDHKD ended Wednesday at 5.2176 gaining 145 pips (0.28%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (NZDHKD as at Sep 16, 2020):

Daily technical analysis candlestick chart for New Zealand Dollar/Hong Kong Dollar (NZDHKD) as at Sep 16, 2020

Wednesday's trading range has been 443 pips (0.85%), that's slightly below the last trading month's daily average range of 496 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NZDHKD.

After trading down to 5.1942 earlier during the day, the currency bounced off the key technical support level at 5.1953 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on August 10th, NZDHKD actually lost -0.21% on the following trading day.

Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

With prices trading close to this year's high at 5.2615, upside momentum could speed up should the forex pair be able to break out to new highs for the year.

Among the two 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 534 times, NZDHKD closed higher 56.37% 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 54.87% with an average market move of 0.14%.

With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more


Market Conditions for NZDHKD as at Sep 16, 2020

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