AUDNZD closes below its opening price unable to hold early session gains
Australian Dollar/New Zealand Dollar (AUDNZD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
AUDNZD finished the week 0.11% higher at 1.0435 after losing 3 pips (-0.03%) today on low volume. Trading 17 pips higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 23rd, AUDNZD lost -0.15% on the following trading day. 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 (AUDNZD as at Feb 14, 2020):
Friday's trading range has been 28 pips (0.27%), that's below the last trading month's daily average range of 47 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUDNZD.
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.
Prices are trading close to the key technical resistance level at 1.0466 (R1).
While the pair is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 1.0398 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for AUD/NZD. Out of 246 times, AUDNZD closed lower 52.85% 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 60.16% with an average market move of -0.09%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more