USDCAD runs into sellers around 1.3700 for the third day in a row
US Dollar/Canadian Dollar (USDCAD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, USDCAD ended the month -1.42% lower at 1.3576 after losing 85 pips (-0.62%) today on low volume. Closing below Monday's low at 1.3648, the forex pair confirmed its breakout through the prior session low after trading up to 78 pips below it intraday.
Daily Candlestick Chart (USDCAD as at Jun 30, 2020):
Tuesday's trading range has been 130 pips (0.95%), that's above the last trading month's daily average range of 107 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for USDCAD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 1.3505 (S1). Unable to break through the key technical resistance level at 1.3686 (R1), the pair closed below it after spiking up to 1.3700 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. The Loonie ran into sellers again today around 1.3700 for the third trading day in a row after having found sellers at 1.3705 in the previous session and at 1.3716 two days ago. The last time this happened on June 22nd, USDCAD actually gained 0.20% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the nearby swing low at 1.3486 where further sell stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Its common bearish interpretation has been confirmed for USD/CAD. Out of 157 times, USDCAD closed lower 56.69% of the time on the next trading day after the market condition occurred.
With four out of the other six Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCHF closing -0.41% lower and EURUSD losing -0.08%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more