USDAUD closes higher for the 2nd day in a row
US Dollar/Australian Dollar (USDAUD) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDAUD finished Monday at 1.4039 gaining 39 pips (0.28%). Closing above Friday's high at 1.4019, the market confirmed its breakout through the previous session high after trading up to 111 pips above it intraday.
Daily Candlestick Chart (USDAUD as at Aug 03, 2020):
Monday's trading range has been 144 pips (1.03%), that's slightly above the last trading month's daily average range of 131 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.
Unable to break through the key technical resistance level at 1.4043 (R1), the forex pair closed below it after spiking up to 1.4130 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on July 30th, USDAUD actually gained 0.73% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for USD/AUD. Out of 504 times, USDAUD closed lower 53.97% 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 three trading days, showing a win rate of 53.57% with an average market move of -0.03%.