CADUSD closes within prior day's range
Canadian Dollar/US Dollar (CADUSD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CADUSD ended the month 1.24% higher at 0.7457 after gaining 7 pips (0.09%) today on high volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CADUSD as at Jul 31, 2020):
Friday's trading range has been 36 pips (0.48%), that's slightly below the last trading month's daily average range of 43 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CADUSD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 0.7490 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 0.7501 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 0.7429 where further sell stops could get activated. Further buying might move prices higher should the market test June's nearby high at 0.7510.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for CAD/USD. Out of 761 times, CADUSD closed higher 50.07% 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 three trading days, showing a win rate of 50.59% with an average market move of 0.02%.