THBUSD finds buyers at key support level
Thai Baht/US Dollar (THBUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, THBUSD finished Thursday at 0.03062 gaining 7 pips (0.23%). Trading up to 13 pips lower after the open, the pair managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (THBUSD as at Mar 26, 2020):
Thursday's trading range has been 27 pips (0.88%), that's below the last trading month's daily average range of 33 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for THBUSD.
After trading down to 0.03042 earlier during the day, the market bounced off the key technical support level at 0.03053 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on March 6th, THBUSD actually lost -0.03% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 0.03090 where further buy stops might get activated.
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 THB/USD. Out of 858 times, THBUSD closed higher 50.58% 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 54.55% with an average market move of 0.05%.