AUDUSD finds buyers around 0.6709 for the third day in a row
Australian Dollar/US Dollar (AUDUSD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AUDUSD ended the week 0.6% higher at 0.6714 after losing 5 pips (-0.07%) today on low volume. Trading 13 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 6th, AUDUSD lost -0.85% on the following trading day. 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 (AUDUSD as at Feb 14, 2020):
Friday's trading range has been 22 pips (0.33%), that's far below the last trading month's daily average range of 44 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 AUDUSD. Prices continued to consolidate within a tight trading range between 0.6707 and 0.6750 where it has been caught now for the last three trading days.
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, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
AUD/USD found buyers again today around 0.6709 for the third trading day in a row after having found demand at 0.6707 in the prior session and at 0.6712 two days ago.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 0.6750 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 0.6707 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for AUD/USD. Out of 401 times, AUDUSD closed higher 52.87% of the time on the next trading day after the market condition occurred.
With four out of the other six 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 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