NZDAUD closes above its opening price after recovering from early selling pressure
New Zealand Dollar/Australian Dollar (NZDAUD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
NZDAUD finished the week -0.1% lower at 0.9583 after gaining 3 pips (0.03%) today on low volume. Trading up to 15 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 23rd, NZDAUD gained 0.16% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NZDAUD as at Feb 14, 2020):
Friday's trading range has been 25 pips (0.26%), that's below the last trading month's daily average range of 43 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NZDAUD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Bullish Spinning Top which are both known as bullish patterns.
Prices are trading close to the key technical support level at 0.9561 (S1).
Although the pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 0.9617 where further buy 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 "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for NZD/AUD. Out of 244 times, NZDAUD closed higher 54.10% 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 59.43% with an average market move of 0.10%.