NZDEUR breaks back above 200-day moving average
New Zealand Dollar/Euro (NZDEUR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
NZDEUR ended the month 2.83% higher at 0.5746 after gaining 34 pips (0.6%) today. Closing above Monday's high at 0.5725, NZD/EUR confirmed its breakout through the previous session high after trading up to 25 pips above it intraday.
Daily Candlestick Chart (NZDEUR as at Jun 30, 2020):
Tuesday's trading range has been 53 pips (0.93%), that's slightly below the last trading month's daily average range of 55 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NZDEUR. Prices continued to consolidate within a tight trading range between 0.5687 and 0.5753 where it has been caught now for the whole last trading week.
Even with a weak opening the pair managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 1st, NZDEUR gained 0.92% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The currency managed to close back above the 200-day moving average at 0.5729. After having been unable to move lower than 0.5690 in the previous session, the forex pair found buyers again around the same price level today at 0.5697.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the nearby swing low at 0.5690 where further sell stops could get triggered. As prices are trading close to June's high at 0.5817, upside momentum might speed up should the market mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for NZD/EUR. Out of 152 times, NZDEUR closed higher 53.95% of the time on the next trading day after the market condition occurred.