NZDCHF closes lower for the 2nd day in a row
New Zealand Dollar/Swiss Franc (NZDCHF) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NZDCHF finished Wednesday at 0.6039 edging lower 9 pips (-0.15%). Today's close at 0.6039 marks the lowest recorded closing price since May 29th. Trading 21 pips higher after the open, the FX pair 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 failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NZDCHF as at Aug 05, 2020):
Wednesday's trading range has been 42 pips (0.69%), that's below the last trading month's daily average range of 50 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NZDCHF.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on July 22nd, NZDCHF lost -0.89% on the following trading day.
Although the forex pair is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Trading close to June's low at 0.5947 we might see further downside momentum if potential sell stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NZD/CHF. Out of 316 times, NZDCHF closed higher 52.53% 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 four trading days, showing a win rate of 55.38% with an average market move of 0.08%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are EURUSD gaining 0.52% and AUDUSD closing 0.42% higher. On the flipside the worst performers have been USDCHF closing -0.53% lower and USDCAD losing -0.4%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been EURTRY surging 2.58% and USDTRY closing 2.08% higher. The worst performers of the day have been TRYJPY tanking -2.09% and USDNOK closing -1.58% lower. Read more