EURCAD closes above its opening price after recovering from early selling pressure
Euro/Canadian Dollar (EURCAD) Technical Analysis Report for Oct 14, 2020 | by Techniquant Editorial Team
EURCAD ended Wednesday at 1.5447 gaining 16 pips (0.1%) on low volume. Trading up to 41 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EURCAD as at Oct 14, 2020):
Wednesday's trading range has been 78 pips (0.51%), that's slightly below the last trading month's daily average range of 81 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EURCAD.
After moving lower in the prior session, the pair managed to close higher but below the previous 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 September 17th, EURCAD gained 0.23% on the following trading day.
Prices are trading close to the key technical resistance level at 1.5470 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 1.5581.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four 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 88 times, EURCAD closed higher 55.68% 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 48.86% with an average market move of 0.09%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.57% and NZDUSD closing 0.11% higher. On the flipside the worst performers have been USDJPY closing -0.29% lower and USDCHF losing -0.16%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 1.2% and GBPZAR closing 0.83% higher. The worst performers of the day have been EURGBP tanking -0.68% and ZARJPY closing -0.62% lower. Read more