CHFEUR closes above its opening price after recovering from early selling pressure
Swiss Franc/Euro (CHFEUR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CHFEUR finished Thursday at 0.9410 edging higher 4 pips (0.04%). Trading up to 20 pips lower after the open, the pair managed to reverse during the session as bulls took control ending the day above its opening price. 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 (CHFEUR as at Mar 26, 2020):
Thursday's trading range has been 35 pips (0.37%), that's far below the last trading month's daily average range of 57 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CHFEUR.
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. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on March 18th, CHFEUR gained 0.21% on the following trading day.
After trading as low as 0.9386 during the day, the forex pair found support at the 50-day moving average at 0.9395.
Although the FX pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for CHF/EUR. Out of 264 times, CHFEUR closed higher 53.03% 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 55.68% with an average market move of 0.08%.