NZDUSD pushes through Monday's high
New Zealand Dollar/US Dollar (NZDUSD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
NZDUSD finished the month 4.03% higher at 0.6455 after gaining 34 pips (0.53%) today on low volume. Trading up to 32 pips lower after the open, the Kiwi managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 0.6443, the currency confirmed its breakout through the prior session high after trading up to 19 pips above it intraday.
Daily Candlestick Chart (NZDUSD as at Jun 30, 2020):
Tuesday's trading range has been 77 pips (1.2%), that's slightly below the last trading month's daily average range of 81 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for NZDUSD.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
After spiking up to 0.6462 during the day, NZD/USD found resistance at the 20-day moving average at 0.6461. The last time this happened on May 18th, NZDUSD actually gained 0.61% on the following trading day.
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 Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for NZD/USD. Out of 138 times, NZDUSD closed higher 50.72% 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 55.80% with an average market move of 0.07%.
With three of the other Major FX Pairs closing higher and three closing lower today, the winners of the day are GBPUSD surging 0.82% and AUDUSD gaining 0.52%. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more