USDNZD runs into sellers again around 1.7310
US Dollar/New Zealand Dollar (USDNZD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, USDNZD finished Thursday at 1.6776 losing 315 pips (-1.84%). Trading 219 pips higher after the open, the pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Wednesday's low at 1.6912, USD/NZD confirmed its breakout through the previous session low after trading up to 215 pips below it intraday.
Daily Candlestick Chart (USDNZD as at Mar 26, 2020):
Thursday's trading range has been 613 pips (3.59%), that's slightly above the last trading month's daily average range of 483 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for USDNZD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 1.6653 (S1). After having been unable to move above 1.7277 in the prior session, the forex pair ran into sellers again around the same price level today, missing to move higher than 1.7310. The last time this happened on Monday, USDNZD lost -1.89% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for USD/NZD. Out of 26 times, USDNZD closed lower 57.69% of the time on the next trading day after the market condition occurred.