NZDCHF runs into sellers around 0.6323 for the third day in a row
New Zealand Dollar/Swiss Franc (NZDCHF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
NZDCHF ended the week 0.97% higher at 0.6320 after gaining 14 pips (0.22%) today on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NZDCHF as at Feb 14, 2020):
Friday's trading range has been 26 pips (0.41%), that's far below the last trading month's daily average range of 48 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NZDCHF.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Wednesday, NZDCHF actually lost -0.30% on the following trading day.
Unable to break through the key technical resistance level at 0.6322 (R1), the market closed below it after spiking up to 0.6323 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. NZD/CHF ran into sellers again today around 0.6323 for the third trading day in a row after having found sellers at 0.6330 in the previous session and at 0.6328 two days ago.
The currency shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 0.6330 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for NZD/CHF. Out of 47 times, NZDCHF closed higher 57.45% 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 55.32% with an average market move of 0.34%.
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