NZDEUR closes above its opening price after recovering from early selling pressure
New Zealand Dollar/Euro (NZDEUR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
NZDEUR ended Thursday at 0.5403 gaining 27 pips (0.5%). Trading up to 83 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, NZDEUR gained 1.27% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NZDEUR as at Mar 26, 2020):
Thursday's trading range has been 132 pips (2.46%), that's slightly below the last trading month's daily average range of 136 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 NZDEUR. Prices continued to consolidate within a tight trading range between 0.5237 and 0.5458 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 0.5458 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 0.5458 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for NZD/EUR. Out of 766 times, NZDEUR closed higher 54.05% 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 53.39% with an average market move of 0.11%.