CADCHF closes higher for the 2nd day in a row
Canadian Dollar/Swiss Franc (CADCHF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CADCHF finished the month unchanged at 0.6978 after gaining 15 pips (0.22%) today on low volume. Trading up to 32 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. The last time this happened on June 25th, CADCHF actually lost -0.40% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CADCHF as at Jun 30, 2020):
Tuesday's trading range has been 46 pips (0.66%), that's slightly below the last trading month's daily average range of 62 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CADCHF. Prices continued to consolidate within a tight trading range between 0.6914 and 0.6989 where it has been caught now for the whole last trading week.
The pair managed to close back above the 50-day moving average at 0.6976 for the first time since June 23rd.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 0.7018 where further buy stops could get triggered. As prices are trading close to June's low at 0.6906, downside momentum might accelerate should the currency mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for CAD/CHF. Out of 112 times, CADCHF closed lower 50.00% 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 55.36% with an average market move of -0.30%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more