USDHKD finds buyers at key support level
US Dollar/Hong Kong Dollar (USDHKD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
USDHKD finished the week 0.02% higher at 7.7681 after gaining 8 pips (0.01%) today on low volume. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (USDHKD as at Feb 14, 2020):
Friday's trading range has been 29 pips (0.04%), that's far below the last trading month's daily average range of 52 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDHKD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, 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 last time a White Candle showed up on Wednesday, USDHKD actually lost -0.05% on the following trading day.
After trading down to 7.7659 earlier during the day, the FX pair bounced off the key technical support level at 7.7661 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 7.7655 in the prior session, the pair found buyers again around the same price level today at 7.7659.
While USD/HKD is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 7.7720 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 7.7631 where further sell stops could get activated.
Among the six 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 USD/HKD. Out of 56 times, USDHKD closed higher 50.00% 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 55.36% with an average market move of 0.01%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more