CHFEUR dominated by bulls lifting the market higher throughout the day
Swiss Franc/Euro (CHFEUR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CHFEUR finished the week -0.7% lower at 0.9443 after gaining 33 pips (0.35%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHFEUR as at May 22, 2020):
Friday's trading range has been 45 pips (0.48%), that's slightly above the last trading month's daily average range of 39 pips. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CHFEUR.
One bullish candlestick pattern matches today's price action, the White Candle.
The currency managed to close back above the 100-day moving average at 0.9416. The forex pair ran into sellers again today around 0.9450 for the third trading day in a row after having found sellers at 0.9448 in the previous session and at 0.9454 two days ago.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 0.9474. The last time this happened on Wednesday, CHFEUR actually lost -0.32% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the close-by swing high at 0.9454 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for CHF/EUR. Out of 76 times, CHFEUR closed higher 52.63% 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 68.42% with an average market move of 0.23%.