AUDCHF closes higher for the 4th day in a row
Australian Dollar/Swiss Franc (AUDCHF) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, AUDCHF ended Wednesday at 0.6644 gaining 13 pips (0.2%) on high volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AUDCHF as at Sep 16, 2020):
Wednesday's trading range has been 42 pips (0.63%), that's below the last trading month's daily average range of 52 pips. Weekly volatility is also lower, being 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 0.6593 and 0.6666 where it has been caught now for the whole last trading week.
Although the pair 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 accelerate should prices move below the close-by swing low at 0.6593 where further sell stops might get triggered. As prices are trading close to September's high at 0.6714, upside momentum could speed up should the FX pair mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for AUD/CHF. Out of 80 times, AUDCHF closed higher 55.00% 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 four trading days, showing a win rate of 56.25% with an average market move of 0.16%.
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