CADNZD breaks below key technical support level
Canadian Dollar/New Zealand Dollar (CADNZD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, CADNZD finished Wednesday at 1.1271 losing 25 pips (-0.22%). Today's close at 1.1271 marks the lowest recorded closing price since August 6th. Closing below Tuesday's low at 1.1283, the forex pair confirmed its breakout through the prior session low after trading up to 43 pips below it intraday.
Daily Candlestick Chart (CADNZD as at Sep 16, 2020):
Wednesday's trading range has been 66 pips (0.58%), that's below the last trading month's daily average range of 84 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CADNZD.
Prices broke below the key technical support level at 1.1285 (now R1), which is likely to act as resistance going forward. The last time this happened on Monday, CADNZD lost -0.28% on the following trading day.
The FX pair shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test August's close-by low at 1.1217.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for CAD/NZD. Out of 370 times, CADNZD closed lower 50.27% of the time on the next trading day after the market condition occurred.