CADUSD finds support at 20-day moving average

Canadian Dollar/US Dollar (CADUSD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team


CADUSD finds support at 20-day moving average
CADUSD closes lower for the 2nd day in a row
CADUSD breaks below Thursday's low


Moving lower for the 2nd day in a row, CADUSD ended the week 0.78% higher at 0.7143 after losing 23 pips (-0.32%) today. Closing below Thursday's low at 0.7158, the market confirmed its breakout through the prior session low after trading up to 40 pips below it intraday.

Daily Candlestick Chart (CADUSD as at May 22, 2020):

Daily technical analysis candlestick chart for Canadian Dollar/US Dollar (CADUSD) as at May 22, 2020

Friday's trading range has been 55 pips (0.77%), that's slightly below the last trading month's daily average range of 60 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 CADUSD.

After trading as low as 0.7118 during the day, CAD/USD found support at the 20-day moving average at 0.7136. The last time this happened on April 16th, CADUSD gained 0.59% on the following trading day.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Buying might accelerate should prices move above the close-by swing high at 0.7194 where further buy stops could get activated. Further buying might move prices higher should the market test April's nearby high at 0.7220. As prices are trading close to May's low at 0.7056, downside momentum could speed up should the currency mark new lows for the month.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for CAD/USD. Out of 534 times, CADUSD closed higher 51.87% of the time on the next trading day after the market condition occurred.

Market Conditions for CADUSD as at May 22, 2020

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