NZDUSD finds buyers again around 0.6776
New Zealand Dollar/US Dollar (NZDUSD) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
NZDUSD finished the week 1.47% higher at 0.6828 after gaining 47 pips (0.69%) today. Today's close at 0.6828 marks the highest recorded closing price since December 18, 2018. Closing above Thursday's high at 0.6795, the pair confirmed its breakout through the prior session high after trading up to 50 pips above it intraday.
Daily Candlestick Chart (NZDUSD as at Jan 11, 2019):
Friday's trading range has been 69 pips (1.02%), that's slightly above the last trading month's daily average range of 64 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NZDUSD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The Kiwi managed to close above the 200-day moving average at 0.6801 for the first time since December 18, 2018. When this moving average was crossed above the last time on December 18, 2018, NZDUSD actually lost -1.17% on the following trading day. After having been unable to move lower than 0.6771 in the previous session, the market found buyers again around the same price level today at 0.6776.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NZD/USD. Out of 115 times, NZDUSD closed higher 56.52% 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 53.91% with an average market move of 0.05%.
With four out of the other six Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.71% and AUDUSD closing 0.4% higher. On the flipside the worst performers have been EURUSD closing -0.27% lower and USDCHF losing -0.09%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been NZDCAD surging 0.98% and GBPCAD closing 0.97% higher. The worst performers of the day have been EURNZD tanking -1.04% and EURGBP closing -0.99% lower. Read more