CADUSD runs into sellers again around 0.7412
Canadian Dollar/US Dollar (CADUSD) Technical Analysis Report for Jul 09, 2020 | by Techniquant Editorial Team
CADUSD finished Thursday at 0.7361 tanking 39 pips (-0.53%). This is the biggest single-day loss in over two weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CADUSD as at Jul 09, 2020):
Thursday's trading range has been 56 pips (0.76%), that's slightly above the last trading month's daily average range of 49 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 strongly lower than usual for CADUSD.
One bearish candlestick pattern matches today's price action, the Black Candle.
CAD/USD closed back below the 20-day moving average at 0.7361. When this moving average was crossed below the last time on Tuesday, CADUSD actually gained 0.67% on the following trading day. After having been unable to move above 0.7411 in the previous session, the pair ran into sellers again around the same price level today, failing to move higher than 0.7412.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the nearby swing low at 0.7340 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CAD/USD. Out of 231 times, CADUSD closed higher 55.84% of the time on the next trading day after the market condition occurred.