AUDCHF closes above its opening price after recovering from early selling pressure
Australian Dollar/Swiss Franc (AUDCHF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AUDCHF ended Thursday at 0.5840 gaining 16 pips (0.27%). Trading up to 96 pips lower after the open, the pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, AUDCHF gained 1.70% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AUDCHF as at Mar 26, 2020):
Thursday's trading range has been 139 pips (2.39%), that's slightly below the last trading month's daily average range of 174 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for AUDCHF.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 0.5857 (R1), the currency closed below it after spiking up to 0.5867 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 0.5949 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for AUD/CHF. Out of 213 times, AUDCHF closed lower 54.93% 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 57.28% with an average market move of -0.56%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more