NZDEUR pushes through Wednesday's high
New Zealand Dollar/Euro (NZDEUR) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
NZDEUR finished Thursday at 0.5802 gaining 26 pips (0.45%) on high volume. Closing above Wednesday's high at 0.5790, the pair confirmed its breakout through the prior session high after trading up to 23 pips above it intraday.
Daily Candlestick Chart (NZDEUR as at Aug 15, 2019):
Thursday's trading range has been 48 pips (0.83%), that's slightly above the last trading month's daily average range of 48 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for NZDEUR. Prices continued to consolidate within a tight trading range between 0.5723 and 0.5813 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 0.5794 (now S1), which is likely to act as support going forward. The last time this happened on August 8th, NZDEUR actually lost -0.38% on the following trading day. Prices are trading close to the key technical resistance level at 0.5836 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for NZD/EUR. Out of 295 times, NZDEUR closed higher 53.22% 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 53.22% with an average market move of 0.01%.