EURCAD breaks below Monday's low
Euro/Canadian Dollar (EURCAD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EURCAD ended the month -0.28% lower at 1.5249 after losing 108 pips (-0.7%) today. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 1.5338, the currency confirmed its breakout through the previous session low after trading up to 96 pips below it intraday.
Daily Candlestick Chart (EURCAD as at Jun 30, 2020):
Tuesday's trading range has been 128 pips (0.83%), that's slightly above the last trading month's daily average range of 120 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 slightly lower than usual for EURCAD.
One bearish candlestick pattern matches today's price action, the Black Candle.
The pair closed back below the 20-day moving average at 1.5268 for the first time since June 19th. When this moving average was crossed below the last time on June 19th, EURCAD actually gained 0.11% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to April's low at 1.5054 we could see further downside momentum if potential sell stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EUR/CAD. Out of 313 times, EURCAD closed higher 51.76% 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 55.59% with an average market move of 0.23%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more