AUDEUR closes within prior day's range after lackluster session
Australian Dollar/Euro (AUDEUR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
AUDEUR finished the week 1.66% higher at 0.6198 after edging lower 1 pip (-0.02%) today on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AUDEUR as at Feb 14, 2020):
Friday's trading range has been 26 pips (0.42%), that's far below the last trading month's daily average range of 43 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUDEUR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Northern Doji showed up on January 2nd, AUDEUR lost -0.48% on the following trading day.
Prices are trading close to the key technical support level at 0.6173 (S1). Prices are trading close to the key technical resistance level at 0.6213 (R1). After having been unable to move above 0.6217 in the prior session, the forex pair ran into sellers again around the same price level today, missing to move higher than 0.6212.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 0.6217 where further buy stops could get activated. With prices trading close to this year's high at 0.6261, upside momentum might speed up should the market be able to break out to new highs for the year. Trading close to December's high at 0.6264 we could see further upside momentum if potential buy stops at the level get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for AUD/EUR. Out of 141 times, AUDEUR closed higher 57.45% 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 10 trading days, showing a win rate of 56.03% with an average market move of 0.18%.