USDCAD pushes through Thursday's high
US Dollar/Canadian Dollar (USDCAD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDCAD ended the week -0.77% lower at 1.4000 after gaining 46 pips (0.33%) today. Closing above Thursday's high at 1.3971, the forex pair confirmed its breakout through the prior session high after trading up to 78 pips above it intraday.
Daily Candlestick Chart (USDCAD as at May 22, 2020):
Friday's trading range has been 108 pips (0.77%), that's slightly below the last trading month's daily average range of 118 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDCAD.
After spiking up to 1.4049 during the day, USD/CAD found resistance at the 20-day moving average at 1.4013. The last time this happened on April 16th, USDCAD lost -0.59% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to May's high at 1.4173, upside momentum could speed up should the Loonie mark new highs for the month. Further selling might move prices lower should the market test April's nearby low at 1.3850.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for USD/CAD. Out of 621 times, USDCAD closed lower 51.69% of the time on the next trading day after the market condition occurred.
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 -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCHF closing 0.08% higher and USDJPY gaining 0.03%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more