AUDCHF still stuck within tight trading range
Australian Dollar/Swiss Franc (AUDCHF) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
AUDCHF ended Wednesday at 0.6533 losing 7 pips (-0.11%). Trading 36 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 29th, AUDCHF lost -0.29% 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 (AUDCHF as at Aug 05, 2020):
Wednesday's trading range has been 45 pips (0.69%), that's below the last trading month's daily average range of 53 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 AUDCHF. Prices continued to consolidate within a tight trading range between 0.6498 and 0.6573 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns.
After spiking up to 0.6573 during the day, the forex pair found resistance at the 20-day moving average at 0.6566.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the nearby swing low at 0.6508 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for AUD/CHF. Out of 127 times, AUDCHF closed higher 55.12% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after three trading days, showing a win rate of 51.18% with an average market move of 0.03%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are EURUSD gaining 0.52% and AUDUSD closing 0.42% higher. On the flipside the worst performers have been USDCHF closing -0.53% lower and USDCAD losing -0.4%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been EURTRY surging 2.58% and USDTRY closing 2.08% higher. The worst performers of the day have been TRYJPY tanking -2.09% and USDNOK closing -1.58% lower. Read more