CNHUSD closes within previous day's range
Chinese Yuan Renminbi/US Dollar (CNHUSD) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
CNHUSD ended Monday at 0.1428 gaining 1 pip (0.07%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CNHUSD as at Jul 13, 2020):
Monday's trading range has been 4 pips (0.28%), that's slightly below the last trading month's daily average range of 5 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CNHUSD.
One bullish candlestick pattern matches today's price action, the Tweezer Top.
After having been unable to move above 0.1430 in the prior session, CNH/USD ran into sellers again around the same price level today, failing to move higher than 0.1430. The last time this happened on July 8th, CNHUSD lost 0.00% 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 close-by swing high at 0.1433 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 0.1425 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Top" stand out. Its common bullish interpretation has been confirmed for CNH/USD. Out of 293 times, CNHUSD closed higher 38.91% 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 55.97% with an average market move of 0.08%.