AUDNZD finds buyers around 1.0736 for the third day in a row
Australian Dollar/New Zealand Dollar (AUDNZD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AUDNZD ended the month 0.74% higher at 1.0774 after gaining 36 pips (0.34%) today on high volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AUDNZD as at Jul 31, 2020):
Friday's trading range has been 49 pips (0.46%), that's slightly above the last trading month's daily average range of 47 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUDNZD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Wednesday, AUDNZD actually lost -0.36% on the following trading day.
Unable to break through the key technical resistance level at 1.0781 (R1), AUD/NZD closed below it after spiking up to 1.0785 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. The forex pair found buyers again today around 1.0736 for the third trading day in a row after having found demand at 1.0736 in the previous session and at 1.0742 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 1.0801 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for AUD/NZD. Out of 189 times, AUDNZD closed lower 58.73% 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 -0.20%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more