NZDCAD closes lower for the 2nd day in a row
New Zealand Dollar/Canadian Dollar (NZDCAD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NZDCAD ended the week 0.07% higher at 0.8526 after losing 15 pips (-0.18%) today on low volume.
Daily Candlestick Chart (NZDCAD as at Feb 14, 2020):
Friday's trading range has been 39 pips (0.46%), that's below the last trading month's daily average range of 50 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 NZDCAD.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on February 6th, NZDCAD actually lost -0.70% on the following trading day.
Prices are trading close to the key technical support level at 0.8498 (S1). The currency closed back below the 100-day moving average at 0.8532.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the close-by swing low at 0.8489 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NZD/CAD. Out of 54 times, NZDCAD closed higher 51.85% 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 four trading days, showing a win rate of 57.41% with an average market move of 0.07%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more