NZDEUR stuck within tight trading range
New Zealand Dollar/Euro (NZDEUR) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NZDEUR finished the week 1.67% higher at 0.5416 after gaining 13 pips (0.24%) today. Trading up to 27 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 previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NZDEUR as at Mar 27, 2020):
Friday's trading range has been 80 pips (1.48%), that's slightly below the last trading month's daily average range of 134 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 NZDEUR. Prices continued to consolidate within a tight trading range between 0.5293 and 0.5458 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on March 20th, NZDEUR gained 0.13% on the following trading day.
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 could speed up should prices move above the close-by swing high at 0.5458 where further buy stops might get triggered.
Among the five 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 54.18% 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%.