AUDUSD closes lower for the 2nd day in a row
Australian Dollar/US Dollar (AUDUSD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AUDUSD ended the week 1.92% higher at 0.6537 after losing 28 pips (-0.43%) today. Closing below Thursday's low at 0.6549, the forex pair confirmed its breakout through the previous session low after trading up to 43 pips below it intraday.
Daily Candlestick Chart (AUDUSD as at May 22, 2020):
Friday's trading range has been 66 pips (1.01%), that's below the last trading month's daily average range of 80 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 lower than usual for AUDUSD.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on May 14th, AUDUSD actually lost -0.74% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 0.6616 where further buy stops might get triggered. Trading close to March's high at 0.6685 we could see further upside momentum if potential buy stops at the level get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for AUD/USD. Out of 115 times, AUDUSD closed higher 60.00% 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 nine trading days, showing a win rate of 57.39% with an average market move of 0.07%.
With three of the other Major FX Pairs closing higher and three closing lower today, the winners of the day are USDCAD surging 0.33% and USDCHF gaining 0.08%. On the flipside the worst performers have been GBPUSD closing -0.47% lower and EURUSD losing -0.44%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more