USDCHF finds buyers around 0.9055 for the third day in a row
US Dollar/Swiss Franc (USDCHF) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
USDCHF ended Wednesday at 0.9094 gaining 13 pips (0.14%). Trading up to 28 pips lower after the open, the currency managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 0.9089, the market confirmed its breakout through the previous session high after trading up to 22 pips above it intraday.
Daily Candlestick Chart (USDCHF as at Sep 16, 2020):
Wednesday's trading range has been 56 pips (0.62%), that's slightly below the last trading month's daily average range of 62 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDCHF. Prices continued to consolidate within a tight trading range between 0.9049 and 0.9132 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on August 27th, USDCHF actually lost -0.54% on the following trading day.
After trading down to 0.9055 earlier during the day, the pair bounced off the key technical support level at 0.9061 (S1). The failure to close below the support could increase that levels significance as support going forward. After spiking up to 0.9111 during the day, the FX pair found resistance at the 20-day moving average at 0.9100. The Swissy found buyers again today around 0.9055 for the third trading day in a row after having found demand at 0.9052 in the prior session and at 0.9058 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 0.9052 where further sell stops could get triggered. With prices trading close to this year's low at 0.8999, downside momentum might accelerate should USD/CHF break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for USD/CHF. Out of 515 times, USDCHF closed higher 54.17% 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 10 trading days, showing a win rate of 52.62% 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 0.61% and NZDUSD gaining 0.27%. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more