AUDNZD finds buyers again around 1.0413
Australian Dollar/New Zealand Dollar (AUDNZD) Technical Analysis Report for Feb 25, 2020 | by Techniquant Editorial Team
AUDNZD ended Tuesday at 1.0444 gaining 27 pips (0.26%) on high volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AUDNZD as at Feb 25, 2020):
Tuesday's trading range has been 34 pips (0.33%), that's below the last trading month's daily average range of 47 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 AUDNZD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on September 27, 2019, AUDNZD gained 0.29% on the following trading day.
Prices are trading close to the key technical resistance level at 1.0466 (R1). After having been unable to move lower than 1.0412 in the prior session, the market found buyers again around the same price level today at 1.0413.
The currency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 1.0479 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 1.0412 where further sell stops could get triggered. With prices trading close to this year's high at 1.0505, upside momentum might accelerate should the pair be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for AUD/NZD. Out of 819 times, AUDNZD closed lower 53.85% 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 56.29% with an average market move of -0.11%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDJPY losing -0.47% and NZDUSD closing -0.3% lower. On the flipside the best performers have been GBPUSD closing 0.58% higher and EURUSD gaining 0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.14% and GBPNZD closing 0.89% higher. The worst performers of the day have been ZARJPY tanking -0.96% and TRYJPY closing -0.88% lower. Read more