CADCHF runs into sellers again around 0.6901
Canadian Dollar/Swiss Franc (CADCHF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CADCHF ended Thursday at 0.6870 losing 16 pips (-0.23%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CADCHF as at Mar 26, 2020):
Thursday's trading range has been 81 pips (1.18%), that's far below the last trading month's daily average range of 123 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.
After moving higher in the previous session, the market closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man.
After spiking up to 0.6901 during the day, the FX pair found resistance at the 20-day moving average at 0.6901. The last time this happened on February 11th, CADCHF actually gained 0.53% on the following trading day. After having been unable to move above 0.6899 in the previous session, the forex pair ran into sellers again around the same price level today, failing to move higher than 0.6901.
Though the pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 0.6924 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for CAD/CHF. Out of 95 times, CADCHF closed lower 52.63% 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 49.47% with an average market move of -0.31%.
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