CADUSD closes above its opening price after recovering from early selling pressure


Canadian Dollar/US Dollar (CADUSD) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team

Highlights

CADUSD closes above its opening price after recovering from early selling pressure
CADUSD closes within previous day's range after lackluster session

Overview

CADUSD finished Thursday at 0.7373 gaining 13 pips (0.18%) on low volume. Trading up to 20 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, CADUSD gained 0.63% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (CADUSD as at Jul 02, 2020):

Daily technical analysis candlestick chart for Canadian Dollar/US Dollar (CADUSD) as at Jul 02, 2020

Thursday's trading range has been 34 pips (0.46%), that's far below the last trading month's daily average range of 57 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CADUSD.

One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.

Prices are trading close to the key technical resistance level at 0.7405 (R1).

Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.

Buying could speed up should prices move above the close-by swing high at 0.7382 where further buy stops might get activated.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for CAD/USD. Out of 89 times, CADUSD closed lower 52.81% 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 58.43% with an average market move of -0.08%.


Market Conditions for CADUSD as at Jul 02, 2020

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