CHFCAD breaks below Thursday's low
Swiss Franc/Canadian Dollar (CHFCAD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CHFCAD finished the week -0.87% lower at 1.3492 after losing 54 pips (-0.4%) today on low volume. Today's close at 1.3492 marks the lowest recorded closing price since January 20th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 1.3526, the FX pair confirmed its breakout through the previous session low after trading up to 38 pips below it intraday.
Daily Candlestick Chart (CHFCAD as at Feb 14, 2020):
Friday's trading range has been 71 pips (0.52%), that's slightly below the last trading month's daily average range of 82 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 CHFCAD.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on Tuesday, CHFCAD actually lost -0.53% on the following trading day.
Prices are trading close to the key technical support level at 1.3444 (S1).
Although the pair is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for CHF/CAD. Out of 69 times, CHFCAD closed higher 52.17% 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 55.07% with an average market move of 0.52%.