USDAUD dominated by bulls lifting the market higher throughout the day
US Dollar/Australian Dollar (USDAUD) Technical Analysis Report for Jul 23, 2020 | by Techniquant Editorial Team
USDAUD finished Thursday at 1.4088 gaining 82 pips (0.59%) on high volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 1.4061, the FX pair confirmed its breakout through the prior session high after trading up to 41 pips above it intraday.
Daily Candlestick Chart (USDAUD as at Jul 23, 2020):
Thursday's trading range has been 139 pips (0.99%), that's slightly above the last trading month's daily average range of 125 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 USDAUD.
Even with a weak opening the currency managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 1.4338. The last time this happened on June 5th, USDAUD actually lost -0.74% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for USD/AUD. Out of 65 times, USDAUD closed higher 70.77% 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 58.46% with an average market move of 0.67%.