EURCAD closes below its opening price unable to hold early session gains
Euro/Canadian Dollar (EURCAD) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
EURCAD finished Thursday at 1.5245 losing 43 pips (-0.28%) on low volume. Trading 68 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EURCAD as at Jul 02, 2020):
Thursday's trading range has been 111 pips (0.73%), that's slightly below the last trading month's daily average range of 115 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.
The market closed back below the 20-day moving average at 1.5272. When this moving average was crossed below the last time on Tuesday, EURCAD actually gained 0.26% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 1.5198 where further sell stops could get triggered. Further selling might move prices lower should the market test June's close-by low at 1.5055.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for EUR/CAD. Out of 556 times, EURCAD closed lower 51.98% 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 54.86% with an average market move of -0.14%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.18% and EURUSD closing -0.11% lower. On the flipside the best performers have been NZDUSD closing 0.52% higher and AUDUSD gaining 0.17%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been NZDSGD surging 0.59% and NZDJPY closing 0.55% higher. The worst performers of the day have been USDINR tanking -1.06% and USDMXN closing -0.84% lower. Read more