NZDUSD breaks below Thursday's low
New Zealand Dollar/US Dollar (NZDUSD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NZDUSD ended the week 2.76% higher at 0.6098 after losing 23 pips (-0.38%) today. Closing below Thursday's low at 0.6106, the forex pair confirmed its breakout through the prior session low after trading up to 25 pips below it intraday.
Daily Candlestick Chart (NZDUSD as at May 22, 2020):
Friday's trading range has been 50 pips (0.82%), that's far below the last trading month's daily average range of 77 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 lower than usual for NZDUSD.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on April 3rd, NZDUSD gained 1.21% on the following trading day.
Prices are trading close to the key technical support level at 0.6076 (S1).
The currency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 0.6158 where further buy stops could get triggered. Further buying might move prices higher should the market test April's nearby high at 0.6176.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for NZD/USD. Out of 318 times, NZDUSD closed higher 50.63% of the time on the next trading day after the market condition occurred.
With three of the other Major FX Pairs closing higher and three closing lower today, the winners of the day are USDCAD surging 0.33% and USDCHF gaining 0.08%. On the flipside the worst performers have been GBPUSD closing -0.47% lower and EURUSD losing -0.44%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more