NZDAUD fails to close above 20-day moving average
New Zealand Dollar/Australian Dollar (NZDAUD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, NZDAUD finished the week 0.8% higher at 0.9326 after edging higher 3 pips (0.03%) today. Trading 46 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NZDAUD as at May 22, 2020):
Friday's trading range has been 58 pips (0.62%), that's slightly below the last trading month's daily average range of 59 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 lower than usual for NZDAUD.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 0.9301 (S1). After spiking up to 0.9374 during the day, the pair found resistance at the 20-day moving average at 0.9349. The last time this happened on May 12th, NZDAUD lost -1.09% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2019's low at 0.9203 is within reach and we could see further downside momentum should the market break out beyond.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NZD/AUD. Out of 63 times, NZDAUD closed higher 57.14% of the time on the next trading day after the market condition occurred.