CHFNZD closes below its opening price unable to hold early session gains
Swiss Franc/New Zealand Dollar (CHFNZD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CHFNZD finished the month -2.45% lower at 1.6353 after losing 19 pips (-0.12%) today on low volume. Trading 94 pips higher after the open, the pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 15th, CHFNZD actually gained 0.14% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CHFNZD as at Jun 30, 2020):
Tuesday's trading range has been 118 pips (0.72%), that's below the last trading month's daily average range of 190 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CHFNZD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 1.6458 (R1).
The currency shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 1.6496 where further buy 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 "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for CHF/NZD. Out of 774 times, CHFNZD closed lower 52.84% 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 seven trading days, showing a win rate of 55.68% with an average market move of -0.05%.