CADEUR pops to highest close since April 17, 2017
Canadian Dollar/Euro (CADEUR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 9th day in a row, CADEUR ended the week 1.47% higher at 0.6967 after gaining 14 pips (0.2%) today on low volume. Today's close at 0.6967 marks the highest recorded closing price since April 17, 2017. Closing above Thursday's high at 0.6966, the market confirmed its breakout through the previous session high after trading up to 4 pips above it intraday.
Daily Candlestick Chart (CADEUR as at Feb 14, 2020):
Friday's trading range has been 23 pips (0.33%), that's below the last trading month's daily average range of 35 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CADEUR.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on Tuesday, CADEUR gained 0.67% on the following trading day.
After having been unable to move above 0.6966 in the prior session, the currency ran into sellers again around the same price level today, missing to move higher than 0.6970.
Crossing above the upper Bollinger Band for the first time since January 2nd, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 0.6881 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for CAD/EUR. Out of 67 times, CADEUR closed lower 56.72% 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 55.22% with an average market move of -0.10%.