AUDNZD closes below its opening price unable to hold early session gains
Australian Dollar/New Zealand Dollar (AUDNZD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AUDNZD ended Thursday at 1.0170 edging lower 15 pips (-0.15%). Trading 38 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. Closing below Wednesday's low at 1.0183, AUD/NZD confirmed its breakout through the previous session low after trading up to 62 pips below it intraday.
Daily Candlestick Chart (AUDNZD as at Mar 26, 2020):
Thursday's trading range has been 102 pips (1.0%), that's slightly below the last trading month's daily average range of 119 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for AUDNZD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Monday, AUDNZD actually gained 0.17% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
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 247 times, AUDNZD closed lower 52.23% 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 60.32% with an average market move of -0.11%.
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