CADUSD pushes through key technical resistance level
Canadian Dollar/US Dollar (CADUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CADUSD ended Thursday at 0.7133 gaining 86 pips (1.22%). Closing above Wednesday's high at 0.7053, the market confirmed its breakout through the previous session high after trading up to 85 pips above it intraday.
Daily Candlestick Chart (CADUSD as at Mar 26, 2020):
Thursday's trading range has been 133 pips (1.89%), that's slightly above the last trading month's daily average range of 106 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CADUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 0.7068 (now S1), which is likely to act as support going forward. The last time this happened on March 2nd, CADUSD actually lost -0.47% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for CAD/USD. Out of 600 times, CADUSD closed lower 54.83% 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 53.67% with an average market move of -0.16%.