CHFUSD closes higher for the 5th day in a row
Swiss Franc/US Dollar (CHFUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, CHFUSD ended Thursday at 1.0382 surging 149 pips (1.46%). This is the biggest single-day gain in over three years. The last time we've seen such an unusually strong single-day gain on March 9th, CHFUSD actually lost -1.56% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 1.0251, the pair confirmed its breakout through the previous session high after trading up to 162 pips above it intraday.
Daily Candlestick Chart (CHFUSD as at Mar 26, 2020):
Thursday's trading range has been 187 pips (1.83%), that's above the last trading month's daily average range of 155 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CHFUSD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The currency managed to close back above the 100-day moving average at 1.0249 for the first time since March 18th.
Though the forex pair is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for CHF/USD. Out of 119 times, CHFUSD closed lower 57.14% 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 10 trading days, showing a win rate of 56.30% with an average market move of -0.15%.