NZDCHF stuck within tight trading range
New Zealand Dollar/Swiss Franc (NZDCHF) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
NZDCHF ended the week 2.21% higher at 0.5739 after losing 2 pips (-0.03%) today. Trading 41 pips higher after the open, NZD/CHF was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NZDCHF as at Mar 27, 2020):
Friday's trading range has been 85 pips (1.48%), that's below the last trading month's daily average range of 150 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NZDCHF. Prices continued to consolidate within a tight trading range between 0.5635 and 0.5792 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 0.5663 (S1). After having been unable to move above 0.5765 in the prior session, the currency ran into sellers again around the same price level today, failing to move higher than 0.5782. The last time this happened on March 11th, NZDCHF lost -2.29% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 0.5792 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 0.5635 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Its common bearish interpretation has been confirmed for NZD/CHF. Out of 57 times, NZDCHF closed lower 64.91% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.89% with an average market move of -0.51%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.08% and AUDUSD closing 1.65% higher. On the flipside the worst performers have been USDJPY closing -1.48% lower and USDCHF losing -1.27%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 3.95% and CHFZAR closing 3.11% higher. The worst performers of the day have been ZARJPY tanking -3.32% and TRYJPY closing -2.45% lower. Read more