USDCHF runs into sellers again around 0.9149
US Dollar/Swiss Franc (USDCHF) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
USDCHF ended the month -3.58% lower at 0.9134 after gaining 44 pips (0.48%) today on high volume. Trading up to 32 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. The last time this happened on July 16th, USDCHF actually lost -0.76% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (USDCHF as at Jul 31, 2020):
Friday's trading range has been 92 pips (1.01%), that's far above the last trading month's daily average range of 62 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 USDCHF.
Even with a weak opening the forex pair managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
After having been unable to move above 0.9151 in the previous session, the pair ran into sellers again around the same price level today, missing to move higher than 0.9149.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 0.9318.
The trend is clearly bearish, showing an intact downtrend 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 "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for USD/CHF. Out of 727 times, USDCHF closed higher 50.89% 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 NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performer has been USDJPY closing 1.12% higher. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more