EURCAD finds buyers again around 1.5409
Euro/Canadian Dollar (EURCAD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
EURCAD finished Thursday at 1.5468 edging higher 25 pips (0.16%). 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 (EURCAD as at Mar 26, 2020):
Thursday's trading range has been 179 pips (1.16%), that's below the last trading month's daily average range of 281 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EURCAD.
After moving lower in the previous session, the FX pair managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on March 12th, EURCAD actually lost -1.53% on the following trading day.
Prices are trading close to the key technical support level at 1.5292 (S1). Prices are trading close to the key technical resistance level at 1.5658 (R1). After having been unable to move lower than 1.5414 in the previous session, the pair found buyers again around the same price level today at 1.5409.
Although the forex pair is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for EUR/CAD. Out of 86 times, EURCAD closed higher 58.14% 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 10 trading days, showing a win rate of 48.84% with an average market move of 0.13%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more