CADUSD closes lower for the 2nd day in a row
Canadian Dollar/US Dollar (CADUSD) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CADUSD finished the week -0.31% lower at 0.7357 after edging lower 4 pips (-0.05%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CADUSD as at Jul 10, 2020):
Friday's trading range has been 30 pips (0.41%), that's far below the last trading month's daily average range of 47 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for CADUSD.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Takuri Line showed up on February 28th, CADUSD gained 0.55% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for CAD/USD. Out of 217 times, CADUSD closed lower 52.53% 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 54.84% with an average market move of -0.13%.