NZDUSD pushes through Thursday's high
New Zealand Dollar/US Dollar (NZDUSD) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NZDUSD finished the week 0.32% higher at 0.6338 after gaining 18 pips (0.28%) today on high volume. Today's close at 0.6338 marks the highest recorded closing price since September 17th. Closing above Thursday's high at 0.6335, the Kiwi confirmed its breakout through the previous session high after trading up to 19 pips above it intraday.
Daily Candlestick Chart (NZDUSD as at Oct 11, 2019):
Friday's trading range has been 38 pips (0.6%), that's below the last trading month's daily average range of 50 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NZDUSD.
Although the FX pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for NZD/USD. Out of 329 times, NZDUSD closed lower 51.37% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 49.54% with an average market move of -0.14%.
With five out of the other six Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 1.67% and AUDUSD closing 0.47% higher. On the flipside the worst performer has been USDCAD closing -0.67% lower. Looking at the Minor FX Pairs and Crosses, the winners of the day have been ZARJPY surging 2.23% and GBPJPY closing 2.1% higher. The worst performers of the day have been CHFZAR tanking -1.88% and USDZAR closing -1.87% lower. Read more