CZKEUR fails to close above 20-day moving average
Czech Koruna/Euro (CZKEUR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
CZKEUR finished the month 1.02% higher at 0.037494 after surging 150 pips (0.4%) today on low volume. This is the biggest single-day gain in over four weeks. The last time we've seen such an unusually strong single-day gain on June 1st, CZKEUR gained 0.60% on the following trading day. Trading up to 121 pips lower after the open, CZK/EUR managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 0.037430, the market confirmed its breakout through the previous session high after trading up to 153 pips above it intraday.
Daily Candlestick Chart (CZKEUR as at Jun 30, 2020):
Tuesday's trading range has been 354 pips (0.95%), that's above the last trading month's daily average range of 273 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 lower than usual for CZKEUR.
The forex pair managed to close above the 100-day moving average at 0.037474 for the first time since March 4th. After spiking up to 0.037583 during the day, the pair found resistance at the 20-day moving average at 0.037509.
The currency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's high at 0.037769, upside momentum might speed up should the FX pair mark new highs for the month. As prices are trading close to June's low at 0.037083, downside momentum could accelerate should CZKEUR mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for CZK/EUR. Out of 75 times, CZKEUR closed higher 56.00% of the time on the next trading day after the market condition occurred.