ZARCHF closes -1.42% lower at 0.0556
South African Rand/Swiss Franc (ZARCHF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ZARCHF finished Thursday at 0.0556 losing 8 pips (-1.42%).
Daily Candlestick Chart (ZARCHF as at Mar 26, 2020):
Thursday's trading range has been 13 pips (2.3%), that's below the last trading month's daily average range of 19 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ZARCHF.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on Monday, ZARCHF actually gained 1.45% on the following trading day.
Prices are trading close to the key technical support level at 0.0551 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 0.0570 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 0.0549 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for ZAR/CHF. Out of 50 times, ZARCHF closed higher 52.00% of the time on the next trading day after the market condition occurred.