CHFEUR closes within previous day's range
Swiss Franc/Euro (CHFEUR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CHFEUR finished the week 0.57% higher at 0.9400 after losing 18 pips (-0.19%) today on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CHFEUR as at Feb 14, 2020):
Friday's trading range has been 38 pips (0.4%), that's above the last trading month's daily average range of 31 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHFEUR.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Notwithstanding a strong opening CHF/EUR closed below the prior day's open and close, forming a bearish Engulfing Candle.
After having been unable to move above 0.9425 in the previous session, the pair ran into sellers again around the same price level today, failing to move higher than 0.9427.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 0.9352. The last time this happened on January 17th, CHFEUR lost -0.09% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for CHF/EUR. Out of 111 times, CHFEUR closed higher 54.95% 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 52.25% with an average market move of -0.18%.