FXE dominated by bulls lifting the market higher throughout the day
CurrencyShares Euro ETF (FXE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, FXE finished Thursday at 104.56 surging $1.60 (1.55%). This is the biggest single-day gain in over two years. The last time we've seen such an unusually strong single-day gain on March 9th, FXE actually lost -1.33% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (FXE as at Mar 26, 2020):
Thursday's trading range has been $0.96 (0.93%), that's slightly below the last trading month's daily average range of $0.98. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for FXE.
One bullish candlestick pattern matches today's price action, the White Candle.
The ETF managed to close back above the 50-day moving average at 104.18 for the first time since March 16th. Prices are trading close to the key technical resistance level at 105.18 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for FXE. Out of 78 times, FXE closed lower 62.82% 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 60.26% with an average market move of -0.25%.