USDHKD closes above its opening price after recovering from early selling pressure


US Dollar/Hong Kong Dollar (USDHKD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team

Highlights

USDHKD closes above its opening price after recovering from early selling pressure
USDHKD closes higher for the 2nd day in a row
USDHKD finds buyers again around 7.7500
USDHKD still stuck within tight trading range
USDHKD closes within previous day's range

Overview

Moving higher for the 2nd day in a row, USDHKD finished the month -0.01% lower at 7.7506 after gaining 1 pip (0.0%) today on high volume. Trading up to 4 pips lower after the open, USD/HKD managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (USDHKD as at Jun 30, 2020):

Daily technical analysis candlestick chart for US Dollar/Hong Kong Dollar (USDHKD) as at Jun 30, 2020

Tuesday's trading range has been 10 pips (0.01%), that's slightly below the last trading month's daily average range of 12 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. Prices continued to consolidate within a tight trading range between 7.7496 and 7.7510 where it has been caught now for the whole last trading week.

In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on October 8, 2019, USDHKD actually gained 0.01% on the following trading day.

Prices are trading close to the key technical support level at 7.7499 (S1). After having been unable to move lower than 7.7501 in the prior session, the currency found buyers again around the same price level today at 7.7500.

Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.

Selling might accelerate should prices move below the nearby swing low at 7.7497 where further sell stops could get activated. With prices trading close to this year's low at 7.7494, downside momentum might speed up should the pair break out to new lows for the year.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for USD/HKD. Out of 89 times, USDHKD closed lower 56.18% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.69% with an average market move of -0.01%.

With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more


Market Conditions for USDHKD as at Jun 30, 2020

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