THBUSD pushes through Thursday's high
Thai Baht/US Dollar (THBUSD) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, THBUSD ended the month 2.08% higher at 0.03144 after gaining 7 pips (0.22%) today. Today's close at 0.03144 marks the highest recorded closing price since March 12th. Closing above Thursday's high at 0.03142, the FX pair confirmed its breakout through the prior session high after trading up to 4 pips above it intraday.
Daily Candlestick Chart (THBUSD as at May 29, 2020):
Friday's trading range has been 10 pips (0.32%), that's below the last trading month's daily average range of 14 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for THBUSD.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The forex pair managed to close above the 100-day moving average at 0.03143 for the first time since January 15th. When this moving average was crossed above the last time on May 31, 2019, THBUSD gained 0.66% on the following trading day. Unable to break through the key technical resistance level at 0.03146 (R1), the market closed below it after spiking up to 0.03146 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 0.03146 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 0.03130 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for THB/USD. Out of 42 times, THBUSD closed higher 64.29% 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 64.29% with an average market move of 0.22%.