NZDCAD pushes through key technical resistance level
New Zealand Dollar/Canadian Dollar (NZDCAD) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NZDCAD ended Thursday at 0.8582 gaining 11 pips (0.13%) on high volume. Closing above Wednesday's high at 0.8577, the forex pair confirmed its breakout through the previous session high after trading up to 24 pips above it intraday.
Daily Candlestick Chart (NZDCAD as at Aug 15, 2019):
Thursday's trading range has been 44 pips (0.51%), that's below the last trading month's daily average range of 65 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NZDCAD. Prices continued to consolidate within a tight trading range between 0.8515 and 0.8614 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Buyers managed to take out the key technical resistance level at 0.8576 (now S1), which is likely to act as support going forward. The last time this happened on August 6th, NZDCAD actually lost -1.07% 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 Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for NZD/CAD. Out of 383 times, NZDCAD closed higher 51.70% 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 seven trading days, showing a win rate of 51.96% with an average market move of 0.02%.
With five out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are AUDUSD gaining 0.41% and USDCHF closing 0.33% higher. On the flipside the worst performers have been EURUSD closing -0.26% lower and USDCAD losing -0.05%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been ZARJPY surging 1.16% and TRYJPY closing 0.9% higher. The worst performers of the day have been CHFZAR tanking -1.23% and EURZAR closing -1.17% lower. Read more