NZDUSD closes above its opening price after recovering from early selling pressure
New Zealand Dollar/US Dollar (NZDUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, NZDUSD finished Thursday at 0.5961 gaining 110 pips (1.88%). Trading up to 74 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 0.5913, the currency confirmed its breakout through the previous session high after trading up to 76 pips above it intraday.
Daily Candlestick Chart (NZDUSD as at Mar 26, 2020):
Thursday's trading range has been 212 pips (3.62%), that's slightly above the last trading month's daily average range of 173 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for NZDUSD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 0.6005 (R1). After having been unable to move lower than 0.5788 in the prior session, the pair found buyers again around the same price level today at 0.5777. The last time this happened on Monday, NZDUSD gained 1.92% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for NZD/USD. Out of 622 times, NZDUSD closed higher 50.16% 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 53.54% with an average market move of 0.01%.
With three of the other Major FX Pairs closing higher and three closing lower today, the winners of the day are GBPUSD surging 2.72% and AUDUSD gaining 1.75%. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more