EURNZD slides to lowest close since December 18, 2018
Euro/New Zealand Dollar (EURNZD) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EURNZD ended the week -0.83% lower at 1.6787 after tanking 176 pips (-1.04%) today. This is the biggest single-day loss in over two months. Today's close at 1.6787 marks the lowest recorded closing price since December 18, 2018. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 1.6945, the market confirmed its breakout through the previous session low after trading up to 176 pips below it intraday.
Daily Candlestick Chart (EURNZD as at Jan 11, 2019):
Friday's trading range has been 205 pips (1.21%), that's above the last trading month's daily average range of 152 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 higher than usual for EURNZD.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 1.6769 during the day, EUR/NZD found support at the 50-day moving average at 1.6770. The pair closed below the 20-day moving average at 1.6897 for the first time since December 13, 2018. When this moving average was crossed below the last time on October 15, 2018, EURNZD lost -0.58% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Its common bearish interpretation has been confirmed for EUR/NZD. Out of 146 times, EURNZD closed lower 58.22% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.71% and NZDUSD closing 0.69% higher. On the flipside the worst performers have been EURUSD closing -0.27% lower and USDCHF losing -0.09%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been NZDCAD surging 0.98% and GBPCAD closing 0.97% higher. The worst performers of the day have been EURGBP tanking -0.99% and EURAUD closing -0.67% lower. Read more