EURNZD closes below its opening price unable to hold early session gains
Euro/New Zealand Dollar (EURNZD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
EURNZD finished Thursday at 1.8507 losing 93 pips (-0.5%). Trading 292 pips higher after the open, the pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, EURNZD actually gained 0.48% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EURNZD as at Mar 26, 2020):
Thursday's trading range has been 458 pips (2.46%), that's slightly below the last trading month's daily average range of 462 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for EURNZD. Prices continued to consolidate within a tight trading range between 1.8323 and 1.8892 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 1.8323 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 1.8323 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for EUR/NZD. Out of 798 times, EURNZD closed lower 53.63% 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 53.26% with an average market move of -0.05%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more