AUDEUR closes within previous day's range after lackluster session
Australian Dollar/Euro (AUDEUR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, AUDEUR ended the month -1.33% lower at 0.6064 after losing 9 pips (-0.15%) today on high volume. Today's close at 0.6064 marks the lowest recorded closing price since May 29th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AUDEUR as at Jul 31, 2020):
Friday's trading range has been 28 pips (0.46%), that's far below the last trading month's daily average range of 42 pips. Weekly volatility is also lower, being slightly below 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 prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 0.6089 (R1).
Although the pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the nearby swing low at 0.6043 where further sell stops might get triggered. Further selling could move prices lower should the market test June's close-by low at 0.5986.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for AUD/EUR. Out of 145 times, AUDEUR closed lower 50.34% 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 54.48% with an average market move of -0.24%.