AUDNZD breaks below Tuesday's low
Australian Dollar/New Zealand Dollar (AUDNZD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, AUDNZD finished Wednesday at 1.0852 losing 25 pips (-0.23%). Closing below Tuesday's low at 1.0860, the forex pair confirmed its breakout through the previous session low after trading up to 27 pips below it intraday.
Daily Candlestick Chart (AUDNZD as at Sep 16, 2020):
Wednesday's trading range has been 50 pips (0.46%), that's slightly below the last trading month's daily average range of 58 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AUDNZD.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on August 26th, AUDNZD gained 0.08% on the following trading day.
Prices broke below the key technical support level at 1.0862 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's low at 1.0815, downside momentum could accelerate should AUD/NZD mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for AUD/NZD. Out of 124 times, AUDNZD closed lower 60.48% 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 63.71% with an average market move of -0.14%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more