AUDNZD closes within prior day's range
Australian Dollar/New Zealand Dollar (AUDNZD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, AUDNZD finished the week -0.79% lower at 1.0723 after edging lower 3 pips (-0.03%) today. Trading up to 52 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AUDNZD as at May 22, 2020):
Friday's trading range has been 66 pips (0.62%), that's slightly below the last trading month's daily average range of 67 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 lower than usual for AUDNZD.
Three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji.
After trading as low as 1.0668 during the day, the pair found support at the 20-day moving average at 1.0697. The last time this happened on May 12th, AUDNZD gained 1.10% on the following trading day. Prices are trading close to the key technical resistance level at 1.0752 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 1.0866 is within reach and we could see further upside momentum should the currency manage to break out beyond.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for AUD/NZD. Out of 59 times, AUDNZD closed lower 57.63% 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 64.41% with an average market move of -0.03%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more