USDAUD breaks below Tuesday's low
US Dollar/Australian Dollar (USDAUD) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, USDAUD ended Wednesday at 1.3906 losing 59 pips (-0.42%). Closing below Tuesday's low at 1.3953, USD/AUD confirmed its breakout through the previous session low after trading up to 143 pips below it intraday.
Daily Candlestick Chart (USDAUD as at Aug 05, 2020):
Wednesday's trading range has been 170 pips (1.22%), that's 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.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2019's low at 1.3708 is within reach and we could see further downside momentum should the pair break out beyond.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Its common bearish interpretation has been confirmed for USD/AUD. Out of 54 times, USDAUD closed lower 53.70% 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 10 trading days, showing a win rate of 55.56% with an average market move of -0.09%.