CADCHF pushes through key technical resistance level
Canadian Dollar/Swiss Franc (CADCHF) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CADCHF finished the month -2.39% lower at 0.6811 after gaining 39 pips (0.58%) today on high volume. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CADCHF as at Jul 31, 2020):
Friday's trading range has been 85 pips (1.26%), that's far above the last trading month's daily average range of 52 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CADCHF.
Buyers managed to take out the key technical resistance level at 0.6804 (now S1), which is likely to act as support going forward.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 0.6905. The last time this happened on Monday, CADCHF actually lost -0.41% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for CAD/CHF. Out of 85 times, CADCHF closed higher 51.76% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.82% with an average market move of 0.54%.
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