USDCAD runs into sellers around 1.3319 for the third day in a row
US Dollar/Canadian Dollar (USDCAD) Technical Analysis Report for Feb 11, 2019 | by Techniquant Editorial Team
USDCAD finished Monday at 1.3301 gaining 24 pips (0.18%) on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (USDCAD as at Feb 11, 2019):
Monday's trading range has been 57 pips (0.43%), that's below the last trading month's daily average range of 76 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for USDCAD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 1.3254 (S1). Prices are trading close to the key technical resistance level at 1.3334 (R1). The market ran into sellers again today around 1.3319 for the third trading day in a row after having found sellers at 1.3329 in the previous session and at 1.3317 two days ago. The last time this happened on February 5th, USDCAD actually gained 0.66% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 1.3329 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for USD/CAD. Out of 572 times, USDCAD closed lower 54.02% 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 50.87% with an average market move of -0.10%.
With four out of the other six Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.63% and EURUSD closing -0.41% lower. On the flipside the best performers have been USDJPY closing 0.57% higher and USDCHF gaining 0.37%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.38% and USDMXN closing 1.17% higher. The worst performers of the day have been ZARJPY tanking -0.74% and GBPHKD closing -0.63% lower. Read more