CNHUSD closes -0.07% lower at 0.149
Chinese Yuan Renminbi/US Dollar (CNHUSD) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
CNHUSD finished Tuesday at 0.1490 losing 1 pip (-0.07%).
Daily Candlestick Chart (CNHUSD as at Apr 16, 2019):
Tuesday's trading range has been 2 pips (0.13%), that's far below the last trading month's daily average range of 5 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 CNHUSD.
Even with a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on April 11th, CNHUSD actually gained 0.27% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 0.1492 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 0.1486 where further sell stops could get activated. With prices trading close to this year's high at 0.1499, upside momentum might accelerate should the pair be able to break out to new highs for the year. As prices are trading close to April's low at 0.1485, downside momentum could speed up should CNH/USD mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CNH/USD. Out of 215 times, CNHUSD closed higher 40.93% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.81% with an average market move of 0.09%.