CHFUSD closes below its opening price unable to hold early session gains
Swiss Franc/US Dollar (CHFUSD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CHFUSD finished the month 3.71% higher at 1.0948 after losing 53 pips (-0.48%) today on high volume. Trading 39 pips higher after the open, the forex 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 July 16th, CHFUSD actually gained 0.77% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHFUSD as at Jul 31, 2020):
Friday's trading range has been 111 pips (1.01%), that's far above the last trading month's daily average range of 71 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CHFUSD.
In spite of a strong opening CHF/USD closed below the previous day's open and close, forming a bearish Engulfing Candle.
After having been unable to move lower than 1.0928 in the prior session, the market found buyers again around the same price level today at 1.0930.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 1.0734.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for CHF/USD. Out of 727 times, CHFUSD closed lower 51.03% of the time on the next trading day after the market condition occurred.