CADEUR finds buyers again around 0.6415
Canadian Dollar/Euro (CADEUR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CADEUR ended Thursday at 0.6465 edging lower 10 pips (-0.15%). 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 (CADEUR as at Mar 26, 2020):
Thursday's trading range has been 75 pips (1.16%), that's below the last trading month's daily average range of 118 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CADEUR.
After moving higher in the previous session, CAD/EUR closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on March 12th, CADEUR actually gained 1.56% on the following trading day.
Prices are trading close to the key technical support level at 0.6387 (S1). Prices are trading close to the key technical resistance level at 0.6539 (R1). After having been unable to move lower than 0.6398 in the previous session, the FX pair found buyers again around the same price level today at 0.6415.
While the forex pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for CAD/EUR. Out of 93 times, CADEUR closed lower 56.99% 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 48.39% with an average market move of -0.02%.