THBUSD finds buyers at key support level
Thai Baht/US Dollar (THBUSD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, THBUSD finished Wednesday at 0.03215 gaining 9 pips (0.28%). Closing above Tuesday's high at 0.03209, the forex pair confirmed its breakout through the prior session high after trading up to 12 pips above it intraday.
Daily Candlestick Chart (THBUSD as at Sep 16, 2020):
Wednesday's trading range has been 22 pips (0.69%), that's above the last trading month's daily average range of 20 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for THBUSD.
After trading down to 0.03199 earlier during the day, THB/USD bounced off the key technical support level at 0.03202 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on September 1st, THBUSD actually lost -0.47% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to July's high at 0.03238 we might see further upside momentum if potential buy stops at the level get activated.
Among the three 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 800 times, THBUSD closed higher 50.25% 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 53.13% with an average market move of 0.01%.