USDCHF breaks back above 20-day moving average
US Dollar/Swiss Franc (USDCHF) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDCHF finished the week -0.04% lower at 0.9712 after gaining 8 pips (0.08%) today on low volume. 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 (USDCHF as at May 22, 2020):
Friday's trading range has been 35 pips (0.36%), that's far below the last trading month's daily average range of 62 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDCHF.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 14th, USDCHF lost -0.15% on the following trading day.
USD/CHF managed to close back above the 20-day moving average at 0.9710 for the first time since May 15th. Prices are trading close to the key technical resistance level at 0.9741 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 0.9761 where further buy stops could get triggered. Further buying might move prices higher should the market test April's close-by high at 0.9803.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for USD/CHF. Out of 147 times, USDCHF closed higher 53.74% of the time on the next trading day after the market condition occurred.
With four out of the other six Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDJPY gaining 0.03%. 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