USDTHB closes above its opening price after recovering from early selling pressure
US Dollar/Thai Baht (USDTHB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
USDTHB finished the month -2.8% lower at 30.917500 after gaining 41500 pips (0.13%) today on low volume. Trading up to 51500 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 26th, USDTHB actually lost -0.18% on the following trading day. 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 Jun 30, 2020):
Tuesday's trading range has been 101000 pips (0.33%), that's far below the last trading month's daily average range of 190975 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for USDTHB. Prices continued to consolidate within a tight trading range between 30.801000 and 30.970500 where it has been caught now for the whole last trading week.
After moving lower in the previous session, the FX pair managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices are trading close to the key technical resistance level at 30.959000 (R1). USD/THB was sold again around 30.935000 after having seen highs at 30.951000, 30.959000 and 30.956000 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 30.959000 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 30.801000 where further sell stops could get triggered.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for USD/THB. Out of 18 times, USDTHB closed higher 66.67% of the time on the next trading day after the market condition occurred.
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