USDNZD closes higher for the 2nd day in a row
US Dollar/New Zealand Dollar (USDNZD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDNZD ended the week -2.69% lower at 1.6399 after gaining 62 pips (0.38%) today. Closing above Thursday's high at 1.6377, the market confirmed its breakout through the previous session high after trading up to 68 pips above it intraday.
Daily Candlestick Chart (USDNZD as at May 22, 2020):
Friday's trading range has been 134 pips (0.82%), that's far below the last trading month's daily average range of 211 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 slightly lower than usual for USDNZD.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on April 3rd, USDNZD lost -1.20% on the following trading day.
Prices are trading close to the key technical resistance level at 1.6458 (R1).
The forex pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might accelerate should prices move below the nearby swing low at 1.6239 where further sell stops could get triggered. Further selling might move prices lower should the market test April's close-by low at 1.6192.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for USD/NZD. Out of 318 times, USDNZD closed lower 50.63% of the time on the next trading day after the market condition occurred.