CHFNZD closes below its opening price unable to hold early session gains
Swiss Franc/New Zealand Dollar (CHFNZD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CHFNZD ended Thursday at 1.7419 losing 70 pips (-0.4%). Trading 257 pips higher after the open, CHF/NZD was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, CHFNZD lost -1.58% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHFNZD as at Mar 26, 2020):
Thursday's trading range has been 400 pips (2.29%), that's slightly below the last trading month's daily average range of 462 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for CHFNZD.
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 Bearish Spinning Top.
Prices are trading close to the key technical support level at 1.7265 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 1.7265 where further sell stops could get activated.
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. While it is usually interpreted as bullish, it has actually shown to be bearish for CHF/NZD. Out of 60 times, CHFNZD closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 53.33% with an average market move of -0.02%.