USDCHF pushes through Thursday's high
US Dollar/Swiss Franc (USDCHF) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDCHF ended the week 0.34% higher at 0.9712 after gaining 22 pips (0.23%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 0.9704, the market confirmed its breakout through the prior session high after trading up to 14 pips above it intraday.
Daily Candlestick Chart (USDCHF as at Jan 24, 2020):
Friday's trading range has been 30 pips (0.31%), that's far below the last trading month's daily average range of 51 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for USDCHF.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
USD/CHF managed to close above the 20-day moving average at 0.9697 for the first time since November 29, 2019. When this moving average was crossed above the last time on November 21, 2019, USDCHF gained 0.42% on the following trading day. Prices are trading close to the key technical resistance level at 0.9729 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 0.9729 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 0.9669 where further sell stops could get activated. With prices trading close to this year's high at 0.9762, upside momentum might speed up should the Swissy be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for USD/CHF. Out of 290 times, USDCHF closed higher 54.14% of the time on the next trading day after the market condition occurred.
With five out of the other six Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.41% and AUDUSD closing -0.34% lower. On the flipside the best performer has been USDCAD closing 0.14% higher. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDNOK surging 0.57% and USDPLN closing 0.53% higher. The worst performers of the day have been GBPJPY tanking -0.6% and AUDJPY closing -0.53% lower. Read more