NZDCAD closes lower for the 2nd day in a row
New Zealand Dollar/Canadian Dollar (NZDCAD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NZDCAD ended the month 2.58% higher at 0.8763 after edging lower 8 pips (-0.09%) today. Trading 20 pips higher after the open, NZD/CAD was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NZDCAD as at Jun 30, 2020):
Tuesday's trading range has been 40 pips (0.46%), that's far below the last trading month's daily average range of 68 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for NZDCAD. Prices continued to consolidate within a tight trading range between 0.8746 and 0.8803 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
After trading as low as 0.8746 during the day, the FX pair found support at the 20-day moving average at 0.8754. The last time this happened on June 2nd, NZDCAD gained 0.66% on the following trading day. Prices are trading close to the key technical resistance level at 0.8793 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 0.8803 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 0.8713 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for NZD/CAD. Out of 178 times, NZDCAD closed higher 51.12% 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 56.18% with an average market move of 0.15%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more