CADAUD closes higher for the 2nd day in a row


Canadian Dollar/Australian Dollar (CADAUD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team

Highlights

CADAUD closes higher for the 2nd day in a row
CADAUD runs into sellers again around 1.1254
CADAUD closes within previous day's range after lackluster session

Overview

Moving higher for the 2nd day in a row, CADAUD finished the week -0.19% lower at 1.1240 after gaining 23 pips (0.21%) today on low volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (CADAUD as at Feb 14, 2020):

Daily technical analysis candlestick chart for Canadian Dollar/Australian Dollar (CADAUD) as at Feb 14, 2020

Friday's trading range has been 47 pips (0.42%), that's below the last trading month's daily average range of 64 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 CADAUD.

Prices are trading close to the key technical support level at 1.1196 (S1). Prices are trading close to the key technical resistance level at 1.1278 (R1). After having been unable to move above 1.1249 in the prior session, the forex pair ran into sellers again around the same price level today, missing to move higher than 1.1254. The last time this happened on Monday, CADAUD lost -0.18% on the following trading day.

Although the currency is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

Buying could speed up should prices move above the nearby swing high at 1.1278 where further buy stops might get triggered. With prices trading close to this year's high at 1.1307, upside momentum could accelerate should CAD/AUD be able to break out to new highs for the year. As prices are trading close to February's high at 1.1303, upside momentum might speed up should the market mark new highs for the month.

Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for CAD/AUD. Out of 279 times, CADAUD closed lower 51.25% 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 three trading days, showing a win rate of 55.56% with an average market move of -0.04%.


Market Conditions for CADAUD as at Feb 14, 2020

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