CHFCAD closes within prior day's range after lackluster session
Swiss Franc/Canadian Dollar (CHFCAD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CHFCAD finished Thursday at 1.4556 gaining 34 pips (0.23%). 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 (CHFCAD as at Mar 26, 2020):
Thursday's trading range has been 172 pips (1.18%), that's below the last trading month's daily average range of 262 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.
After moving lower in the prior session, the currency managed to close higher but below the previous day's open, forming a bullish Harami Candle.
After trading as low as 1.4491 during the day, the forex pair found support at the 20-day moving average at 1.4499. The last time this happened on February 11th, CHFCAD actually lost -0.53% on the following trading day. After having been unable to move lower than 1.4495 in the prior session, the FX pair found buyers again around the same price level today at 1.4491.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 1.4443 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for CHF/CAD. Out of 96 times, CHFCAD closed higher 53.13% 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 51.04% with an average market move of 0.38%.