CZKEUR closes below its opening price unable to hold early session gains
Czech Koruna/Euro (CZKEUR) Technical Analysis Report for Oct 19, 2020 | by Techniquant Editorial Team
CZKEUR finished Monday at 0.036649 edging lower 7 pips (-0.02%). Trading 129 pips higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CZKEUR as at Oct 19, 2020):
Monday's trading range has been 259 pips (0.71%), that's below the last trading month's daily average range of 303 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CZKEUR. Prices continued to consolidate within a tight trading range between 0.036346 and 0.036827 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, four candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Southern Doji showed up on September 29th, CZKEUR gained 0.45% on the following trading day.
Prices are trading close to the key technical resistance level at 0.036827 (R1). After having been unable to move above 0.036827 in the previous session, CZK/EUR ran into sellers again around the same price level today, failing to move higher than 0.036789.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 0.036827 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CZK/EUR. Out of 600 times, CZKEUR closed higher 52.00% 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 10 trading days, showing a win rate of 53.17% with an average market move of -0.01%.