EURCAD closes above its opening price after recovering from early selling pressure
Euro/Canadian Dollar (EURCAD) Technical Analysis Report for Oct 19, 2020 | by Techniquant Editorial Team
EURCAD finished Monday at 1.5526 gaining 70 pips (0.45%). Trading up to 36 pips lower after the open, EUR/CAD managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Friday's high at 1.5510, the market confirmed its breakout through the previous session high after trading up to 19 pips above it intraday.
Daily Candlestick Chart (EURCAD as at Oct 19, 2020):
Monday's trading range has been 103 pips (0.67%), that's above the last trading month's daily average range of 80 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 higher than usual for EURCAD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The forex pair managed to close back above the 100-day moving average at 1.5501 for the first time since October 12th. When this moving average was crossed above the last time on February 27th, EURCAD gained 0.28% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for EUR/CAD. Out of 150 times, EURCAD closed lower 55.33% 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 55.33% with an average market move of -0.01%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are EURUSD gaining 0.45% and GBPUSD closing 0.23% higher. On the flipside the worst performers have been USDCHF closing -0.51% lower and AUDUSD losing -0.17%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been TRYJPY surging 0.83% and EURAUD closing 0.62% higher. The worst performers of the day have been USDTRY tanking -0.75% and AUDCHF closing -0.68% lower. Read more