CZKEUR breaks below Monday's low
Czech Koruna/Euro (CZKEUR) Technical Analysis Report for Oct 13, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CZKEUR finished Tuesday at 0.036544 losing 246 pips (-0.67%). Today's close at 0.036544 marks the lowest recorded closing price since May 19th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 0.036746, the pair confirmed its breakout through the previous session low after trading up to 255 pips below it intraday.
Daily Candlestick Chart (CZKEUR as at Oct 13, 2020):
Tuesday's trading range has been 311 pips (0.85%), that's slightly above the last trading month's daily average range of 297 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CZKEUR.
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. The last time a Bullish Hikkake Pattern showed up on October 8th, CZKEUR gained 0.67% on the following trading day.
Prices broke below the key technical support level at 0.036720 (now R1), which is likely to act as resistance going forward.
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 "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for CZK/EUR. Out of 311 times, CZKEUR closed higher 58.52% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after two trading days, showing a win rate of 54.34% with an average market move of 0.01%.