CADNZD closes above its opening price after recovering from early selling pressure
Canadian Dollar/New Zealand Dollar (CADNZD) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
CADNZD finished Tuesday at 1.1077 gaining 15 pips (0.14%). Trading up to 18 pips lower after the open, the currency managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 11th, CADNZD actually lost -0.06% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CADNZD as at Apr 16, 2019):
Tuesday's trading range has been 46 pips (0.42%), that's below the last trading month's daily average range of 74 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CADNZD.
Prices are trading close to the key technical resistance level at 1.1109 (R1).
CAD/NZD shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 1.1128 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 1.1022 where further sell stops could get triggered. Further buying might move prices higher should the market test March's close-by high at 1.1174.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for CAD/NZD. Out of 802 times, CADNZD closed lower 51.12% 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 52.62% with an average market move of -0.14%.