EURCHF finds buyers again around 1.0608
Euro/Swiss Franc (EURCHF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EURCHF ended the week -0.57% lower at 1.0638 after gaining 20 pips (0.19%) today on low volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EURCHF as at Feb 14, 2020):
Friday's trading range has been 43 pips (0.41%), that's above the last trading month's daily average range of 36 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EURCHF.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. In spite of a weak opening EUR/CHF managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
Prices are trading close to the key technical resistance level at 1.0665 (R1). After having been unable to move lower than 1.0610 in the previous session, the currency found buyers again around the same price level today at 1.0608.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 1.0693. The last time this happened on January 17th, EURCHF gained 0.09% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Its common bearish interpretation has been confirmed for EUR/CHF. Out of 112 times, EURCHF closed lower 55.36% 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 51.79% with an average market move of 0.21%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more