USDTHB finds buyers around 31.091000 for the third day in a row
US Dollar/Thai Baht (USDTHB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDTHB finished the week -0.38% lower at 31.212000 after gaining 67000 pips (0.22%) today. 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 (USDTHB as at Feb 14, 2020):
Friday's trading range has been 157000 pips (0.5%), that's below the last trading month's daily average range of 220750 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDTHB. Prices continued to consolidate within a tight trading range between 31.070000 and 31.271000 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 31.070000 (S1). Prices are trading close to the key technical resistance level at 31.273000 (R1). The market found buyers again today around 31.091000 for the third trading day in a row after having found demand at 31.072500 in the previous session and at 31.070000 two days ago. The last time this happened on January 23rd, USDTHB gained 0.21% on the following trading day.
Although the pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 31.397500 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 31.070000 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for USD/THB. Out of 328 times, USDTHB closed lower 52.13% 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 56.40% with an average market move of -0.07%.
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