AUDCAD finds buyers again around 0.8886
Australian Dollar/Canadian Dollar (AUDCAD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AUDCAD finished the week 0.19% higher at 0.8897 after losing 18 pips (-0.2%) today on low volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AUDCAD as at Feb 14, 2020):
Friday's trading range has been 37 pips (0.42%), that's below the last trading month's daily average range of 51 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AUDCAD.
Prices are trading close to the key technical support level at 0.8867 (S1). Prices are trading close to the key technical resistance level at 0.8932 (R1). After having been unable to move lower than 0.8890 in the prior session, AUD/CAD found buyers again around the same price level today at 0.8886. The last time this happened on Monday, AUDCAD gained 0.18% on the following trading day.
While the FX pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 0.8867 where further sell stops could get triggered. With prices trading close to this year's low at 0.8844, downside momentum might accelerate should the currency break out to new lows for the year. As prices are trading close to February's low at 0.8847, downside momentum could speed up should the market mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for AUD/CAD. Out of 277 times, AUDCAD closed higher 51.62% 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 three trading days, showing a win rate of 55.60% with an average market move of 0.05%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more