CADEUR dominated by bulls lifting the market higher throughout the day
Canadian Dollar/Euro (CADEUR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
CADEUR finished the month 0.29% higher at 0.6558 after gaining 46 pips (0.71%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 0.6520, CAD/EUR confirmed its breakout through the previous session high after trading up to 41 pips above it intraday.
Daily Candlestick Chart (CADEUR as at Jun 30, 2020):
Tuesday's trading range has been 55 pips (0.84%), that's slightly above the last trading month's daily average range of 52 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CADEUR.
One bullish candlestick pattern matches today's price action, the White Candle.
The currency managed to close back above the 20-day moving average at 0.6550 for the first time since June 19th. When this moving average was crossed above the last time on June 19th, CADEUR actually lost -0.11% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to April's high at 0.6643 we might see further upside momentum if potential buy stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for CAD/EUR. Out of 311 times, CADEUR closed lower 51.45% 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 55.63% with an average market move of -0.21%.