NZDUSD finds buyers again around 0.6423
New Zealand Dollar/US Dollar (NZDUSD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NZDUSD ended the week 0.5% higher at 0.6435 after edging lower 3 pips (-0.05%) today on low volume. Trading 8 pips higher after the open, NZD/USD was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NZDUSD as at Feb 14, 2020):
Friday's trading range has been 22 pips (0.34%), that's far below the last trading month's daily average range of 42 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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 Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 0.6450 (R1). After having been unable to move lower than 0.6429 in the prior session, the Kiwi found buyers again around the same price level today at 0.6423. The last time this happened on Tuesday, NZDUSD gained 0.97% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NZD/USD. Out of 241 times, NZDUSD closed higher 53.94% 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 six trading days, showing a win rate of 50.62% with an average market move of 0.02%.
With four out of the other six Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more