CADCHF climbs to highest close since January 20th
Canadian Dollar/Swiss Franc (CADCHF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CADCHF finished the week 0.88% higher at 0.7412 after gaining 30 pips (0.41%) today on low volume. Today's close at 0.7412 marks the highest recorded closing price since January 20th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 0.7393, the FX pair confirmed its breakout through the prior session high after trading up to 21 pips above it intraday.
Daily Candlestick Chart (CADCHF as at Feb 14, 2020):
Friday's trading range has been 39 pips (0.53%), that's slightly below the last trading month's daily average range of 44 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 CADCHF.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on Tuesday, CADCHF actually gained 0.53% on the following trading day.
Prices are trading close to the key technical resistance level at 0.7438 (R1).
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for CAD/CHF. Out of 69 times, CADCHF closed lower 52.17% 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 55.07% with an average market move of -0.42%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more