CHFAUD closes within prior day's range after lackluster session
Swiss Franc/Australian Dollar (CHFAUD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, CHFAUD finished Wednesday at 1.5051 losing 30 pips (-0.2%) on high volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CHFAUD as at Sep 16, 2020):
Wednesday's trading range has been 95 pips (0.63%), that's below the last trading month's daily average range of 120 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CHFAUD.
Although the currency is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 1.5168 where further buy stops might get triggered. As prices are trading close to September's low at 1.4894, downside momentum could accelerate should the forex pair mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for CHF/AUD. Out of 80 times, CHFAUD closed lower 55.00% 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 four trading days, showing a win rate of 56.25% with an average market move of -0.15%.