AUDCAD closes above its opening price after recovering from early selling pressure
Australian Dollar/Canadian Dollar (AUDCAD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AUDCAD ended Thursday at 0.8501 gaining 43 pips (0.51%). Trading up to 91 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AUDCAD as at Mar 26, 2020):
Thursday's trading range has been 179 pips (2.12%), that's slightly 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 notably higher than usual for AUDCAD.
After moving lower in the previous session, the currency managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 0.8367 earlier during the day, AUD/CAD bounced off the key technical support level at 0.8433 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Tuesday, AUDCAD actually lost -1.86% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for AUD/CAD. Out of 69 times, AUDCAD closed lower 57.97% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.07% with an average market move of -0.07%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more