EURCAD closes within previous day's range
Euro/Canadian Dollar (EURCAD) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
EURCAD ended the week 0.72% higher at 1.5567 after gaining 41 pips (0.26%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EURCAD as at Oct 23, 2020):
Friday's trading range has been 89 pips (0.57%), that's slightly above the last trading month's daily average range of 82 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 1.5501 and 1.5605 where it has been caught now for the last three trading days.
The market managed to close back above the 20-day moving average at 1.5553. When this moving average was crossed above the last time on Wednesday, EURCAD actually lost -0.42% on the following trading day. Prices are trading close to the key technical resistance level at 1.5596 (R1).
The FX pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the nearby swing high at 1.5605 where further buy stops could get activated. As prices are trading close to October's high at 1.5660, upside momentum might accelerate should the currency mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for EUR/CAD. Out of 43 times, EURCAD closed lower 55.81% 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 five trading days, showing a win rate of 51.16% with an average market move of -0.04%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.33% and USDCHF closing -0.31% lower. On the flipside the best performers have been EURUSD closing 0.36% higher and AUDUSD gaining 0.31%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been EURGBP surging 0.71% and EURSGD closing 0.47% higher. The worst performers of the day have been GBPPLN tanking -0.81% and GBPCHF closing -0.65% lower. Read more