USDAUD closes within previous day's range
US Dollar/Australian Dollar (USDAUD) Technical Analysis Report for Jul 24, 2020 | by Techniquant Editorial Team
USDAUD ended the week -1.56% lower at 1.4073 after losing 15 pips (-0.11%) today on high volume. Trading 68 pips higher after the open, the pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, USDAUD lost -1.57% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (USDAUD as at Jul 24, 2020):
Friday's trading range has been 121 pips (0.86%), that's slightly below the last trading month's daily average range of 126 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for USDAUD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 1.3922 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for USD/AUD. Out of 242 times, USDAUD closed higher 50.83% 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 51.65% with an average market move of 0.22%.