EURCAD dominated by bears dragging the market lower throughout the day
Euro/Canadian Dollar (EURCAD) Technical Analysis Report for Oct 22, 2020 | by Techniquant Editorial Team
EURCAD finished Thursday at 1.5526 losing 65 pips (-0.42%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EURCAD as at Oct 22, 2020):
Thursday's trading range has been 85 pips (0.55%), that's slightly above the last trading month's daily average range of 80 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EURCAD. Prices continued to consolidate within a tight trading range between 1.5506 and 1.5605 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 1.5510 (S1). The forex pair closed back below the 50-day moving average at 1.5575. The FX pair found buyers again today around 1.5520 for the third trading day in a row after having found demand at 1.5506 in the previous session and at 1.5506 two days ago. The last time this happened on October 1st, EURCAD actually lost -0.11% on the following trading day.
EUR/CAD shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for EUR/CAD. Out of 182 times, EURCAD closed higher 53.85% 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 53.85% with an average market move of 0.12%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.35% lower. On the flipside the best performers have been NZDUSD closing 0.33% higher and USDJPY gaining 0.24%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDTRY surging 1.65% and EURTRY closing 1.53% higher. The worst performers of the day have been TRYJPY tanking -1.57% and GBPZAR closing -1.18% lower. Read more