NZDCHF dominated by bears dragging the market lower throughout the day
New Zealand Dollar/Swiss Franc (NZDCHF) Technical Analysis Report for Feb 17, 2020 | by Techniquant Editorial Team
NZDCHF ended Monday at 0.6313 losing 7 pips (-0.11%) on low volume. The bears were in full control today, moving the market lower throughout the whole session. 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 (NZDCHF as at Feb 17, 2020):
Monday's trading range has been 27 pips (0.43%), 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. Prices continued to consolidate within a tight trading range between 0.6289 and 0.6333 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bearish Hikkake Pattern, the Bearish Short Candle and the Black Candle which are known as bearish patterns. The last time a Bearish Short Candle showed up on January 29th, NZDCHF lost -0.98% on the following trading day.
Prices are trading close to the key technical support level at 0.6281 (S1). Prices are trading close to the key technical resistance level at 0.6322 (R1).
The pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for NZD/CHF. Out of 113 times, NZDCHF closed higher 53.98% 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 52.21% with an average market move of 0.08%.
With three Major FX Pairs closing higher and three closing lower today, the winners of the day are USDJPY surging 0.09% and EURUSD gaining 0.04%. On the flipside the worst performers have been GBPUSD closing -0.31% lower and USDCHF losing -0.14%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been CHFZAR surging 0.64% and EURZAR closing 0.53% higher. The worst performers of the day have been GBPSGD tanking -0.53% and GBPCHF closing -0.47% lower. Read more