USDCHF finds buyers again around 0.9130
US Dollar/Swiss Franc (USDCHF) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
USDCHF finished Tuesday at 0.9133 losing 45 pips (-0.49%). 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 Aug 04, 2020):
Tuesday's trading range has been 58 pips (0.63%), that's slightly below the last trading month's daily average range of 65 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 strongly higher than usual for USDCHF.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 0.9126 in the previous session, the currency found buyers again around the same price level today at 0.9130. The last time this happened on July 20th, USDCHF actually lost -0.61% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for USD/CHF. Out of 541 times, USDCHF closed higher 51.76% 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 AUDUSD surging 0.53% and EURUSD gaining 0.35%. On the flipside the worst performers have been USDCAD closing -0.55% lower and USDJPY losing -0.22%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been CHFZAR surging 1.54% and EURZAR closing 1.39% higher. The worst performers of the day have been ZARJPY tanking -1.14% and USDCZK closing -0.92% lower. Read more