FXE finds buyers at key support level
CurrencyShares Euro ETF (FXE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
FXE finished the month 1.15% higher at 105.99 after edging lower $0.02 (-0.02%) today. Trading up to $0.17 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 26th, FXE gained 0.08% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FXE as at Jun 30, 2020):
Tuesday's trading range has been $0.46 (0.43%), that's slightly below the last trading month's daily average range of $0.55. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for FXE.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 105.75 earlier during the day, the ETF bounced off the key technical support level at 105.86 (S1). The failure to close below the support could increase that levels importance as support going forward.
While FXE is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 106.40 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 105.67 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for FXE. Out of 200 times, FXE closed higher 54.50% of the time on the next trading day after the market condition occurred.