USDTHB closes higher for the 2nd day in a row
US Dollar/Thai Baht (USDTHB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDTHB ended the week -0.55% lower at 31.909000 after gaining 55500 pips (0.17%) today. Closing above Thursday's high at 31.897000, USD/THB confirmed its breakout through the prior session high after trading up to 26500 pips above it intraday.
Daily Candlestick Chart (USDTHB as at May 22, 2020):
Friday's trading range has been 109000 pips (0.34%), that's far below the last trading month's daily average range of 161000 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 USDTHB. Prices continued to consolidate within a tight trading range between 31.790000 and 31.945500 where it has been caught now for the last three trading days.
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 May 1st, USDTHB actually lost -0.39% on the following trading day.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 31.790000 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for USD/THB. Out of 1,151 times, USDTHB closed lower 52.65% 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 54.30% with an average market move of -0.03%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more