NZDCHF closes above its opening price after recovering from early selling pressure
New Zealand Dollar/Swiss Franc (NZDCHF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
NZDCHF ended Thursday at 0.5741 gaining 23 pips (0.4%). Trading up to 83 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NZDCHF as at Mar 26, 2020):
Thursday's trading range has been 130 pips (2.27%), that's slightly below the last trading month's daily average range of 152 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NZDCHF. Prices continued to consolidate within a tight trading range between 0.5596 and 0.5792 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and two bearish patterns, the Hanging Man and the Last Engulfing Top Pattern.
After trading down to 0.5635 earlier during the day, NZD/CHF bounced off the key technical support level at 0.5663 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on March 6th, NZDCHF actually lost -1.63% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 0.5792 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for NZD/CHF. Out of 61 times, NZDCHF closed higher 59.02% 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 54.10% with an average market move of 0.05%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more