EURCAD rises to highest close since August 20th
Euro/Canadian Dollar (EURCAD) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EURCAD ended the week 0.15% higher at 1.5635 after gaining 36 pips (0.23%) today. Today's close at 1.5635 marks the highest recorded closing price since August 20th. Closing above Thursday's high at 1.5626, EUR/CAD confirmed its breakout through the prior session high after trading up to 31 pips above it intraday.
Daily Candlestick Chart (EURCAD as at Sep 18, 2020):
Friday's trading range has been 79 pips (0.51%), that's below the last trading month's daily average range of 97 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EURCAD. Prices continued to consolidate within a tight trading range between 1.5528 and 1.5657 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
The forex pair managed to close back above the 50-day moving average at 1.5608. When this moving average was crossed above the last time on September 10th, EURCAD gained 0.16% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 1.5657 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for EUR/CAD. Out of 124 times, EURCAD closed lower 60.48% 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 -0.17%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.42% and AUDUSD closing -0.29% lower. On the flipside the best performers have been USDCHF closing 0.34% higher and USDCAD gaining 0.3%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDMXN surging 1.3% and USDZAR closing 1.05% higher. The worst performers of the day have been ZARJPY tanking -1.23% and GBPJPY closing -0.59% lower. Read more