CHFNZD closes lower for the 4th day in a row
Swiss Franc/New Zealand Dollar (CHFNZD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, CHFNZD finished Wednesday at 1.6332 losing 70 pips (-0.43%). Closing below Tuesday's low at 1.6377, the currency confirmed its breakout through the previous session low after trading up to 82 pips below it intraday.
Daily Candlestick Chart (CHFNZD as at Sep 16, 2020):
Wednesday's trading range has been 125 pips (0.76%), that's below the last trading month's daily average range of 155 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CHFNZD.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, CHFNZD lost -0.15% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the nearby swing low at 1.6263 where further sell stops could get activated. As prices are trading close to September's low at 1.6166, downside momentum might speed up should the forex pair mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for CHF/NZD. Out of 84 times, CHFNZD closed lower 54.76% 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 four trading days, showing a win rate of 57.14% with an average market move of -0.10%.