CADUSD pushes through Monday's high
Canadian Dollar/US Dollar (CADUSD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CADUSD ended the month 1.43% higher at 0.7366 after gaining 46 pips (0.63%) today on low volume. Closing above Monday's high at 0.7327, the pair confirmed its breakout through the previous session high after trading up to 42 pips above it intraday.
Daily Candlestick Chart (CADUSD as at Jun 30, 2020):
Tuesday's trading range has been 70 pips (0.96%), that's above the last trading month's daily average range of 58 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 significantly lower than usual for CADUSD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
CAD/USD found buyers again today around 0.7299 for the third trading day in a row after having found demand at 0.7297 in the prior session and at 0.7291 two days ago. The last time this happened on June 22nd, CADUSD actually lost -0.20% on the following trading day.
The forex pair shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 0.7415 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for CAD/USD. Out of 121 times, CADUSD closed higher 53.72% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after two trading days, showing a win rate of 56.20% with an average market move of 0.03%.