CNHUSD pushes through Thursday's high
Chinese Yuan Renminbi/US Dollar (CNHUSD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CNHUSD ended the month 1.2% higher at 0.1431 after gaining 3 pips (0.21%) today on high volume. Closing above Thursday's high at 0.1430, CNH/USD confirmed its breakout through the prior session high after trading up to 4 pips above it intraday.
Daily Candlestick Chart (CNHUSD as at Jul 31, 2020):
Friday's trading range has been 6 pips (0.42%), that's slightly above the last trading month's daily average range of 6 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CNHUSD.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on July 20th, CNHUSD actually gained 0.21% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for CNH/USD. Out of 264 times, CNHUSD closed lower 42.05% 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 50.76% with an average market move of -0.08%.