USDTHB unable to break through key resistance level
US Dollar/Thai Baht (USDTHB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, USDTHB ended Wednesday at 31.106000 losing 88500 pips (-0.28%). Closing below Tuesday's low at 31.158000, the market confirmed its breakout through the prior session low after trading up to 111500 pips below it intraday.
Daily Candlestick Chart (USDTHB as at Sep 16, 2020):
Wednesday's trading range has been 209000 pips (0.67%), that's slightly above the last trading month's daily average range of 191600 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for USDTHB.
Unable to break through the key technical resistance level at 31.203000 (R1), the FX pair closed below it after spiking up to 31.255500 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on September 1st, USDTHB actually gained 0.48% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to July's low at 30.878500 we might see further downside momentum if potential sell stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for USD/THB. Out of 319 times, USDTHB closed lower 52.98% 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 52.35% with an average market move of -0.05%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more