CZKEUR closes above its opening price after recovering from early selling pressure
Czech Koruna/Euro (CZKEUR) Technical Analysis Report for Oct 14, 2020 | by Techniquant Editorial Team
CZKEUR ended Wednesday at 0.036630 gaining 86 pips (0.24%). Trading up to 138 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CZKEUR as at Oct 14, 2020):
Wednesday's trading range has been 376 pips (1.03%), that's above the last trading month's daily average range of 307 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.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 0.036720 (R1), the market closed below it after spiking up to 0.036782 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on September 18th, CZKEUR lost -1.38% on the following trading day. After having been unable to move above 0.036802 in the prior session, the forex pair ran into sellers again around the same price level today, missing to move higher than 0.036782.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for CZK/EUR. Out of 643 times, CZKEUR closed lower 53.81% 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 52.26% with an average market move of 0.00%.