CADNZD closes higher for the 2nd day in a row
Canadian Dollar/New Zealand Dollar (CADNZD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CADNZD ended the week -0.07% lower at 1.1729 after gaining 21 pips (0.18%) today on low volume.
Daily Candlestick Chart (CADNZD as at Feb 14, 2020):
Friday's trading range has been 54 pips (0.46%), that's below the last trading month's daily average range of 67 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CADNZD.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on February 6th, CADNZD actually gained 0.70% on the following trading day.
The market managed to close back above the 100-day moving average at 1.1723. Prices are trading close to the key technical resistance level at 1.1767 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 1.1780 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for CAD/NZD. Out of 314 times, CADNZD closed lower 51.27% 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 nine trading days, showing a win rate of 52.55% with an average market move of -0.07%.