NZDCHF closes within prior day's range
New Zealand Dollar/Swiss Franc (NZDCHF) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
NZDCHF finished Wednesday at 0.6455 gaining 18 pips (0.28%). Today's close at 0.6455 marks the highest recorded closing price since August 1st. Trading up to 24 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NZDCHF as at Dec 04, 2019):
Wednesday's trading range has been 53 pips (0.82%), that's slightly above the last trading month's daily average range of 46 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NZDCHF.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
After trading down to 0.6412 earlier during the day, the market bounced off the key technical support level at 0.6427 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 0.6471 (R1). The currency ran into sellers again today around 0.6465 for the third trading day in a row after having found sellers at 0.6468 in the previous session and at 0.6471 two days ago. The last time this happened on November 18th, NZDCHF actually gained 0.60% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 0.6471 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NZD/CHF. Out of 60 times, NZDCHF closed higher 60.00% 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 five trading days, showing a win rate of 53.33% with an average market move of 0.03%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.83% and USDJPY closing 0.21% higher. On the flipside the worst performers have been USDCAD closing -0.7% lower and EURUSD losing -0.04%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPJPY surging 1.06% and GBPCHF closing 1.01% higher. The worst performers of the day have been EURGBP tanking -0.86% and EURCAD closing -0.74% lower. Read more