CZKEUR breaks above 20-day moving average for the first time since August 28th
Czech Koruna/Euro (CZKEUR) Technical Analysis Report for Oct 20, 2020 | by Techniquant Editorial Team
CZKEUR ended Tuesday at 0.036842 gaining 193 pips (0.53%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 0.036789, the market confirmed its breakout through the previous session high after trading up to 59 pips above it intraday.
Daily Candlestick Chart (CZKEUR as at Oct 20, 2020):
Tuesday's trading range has been 267 pips (0.73%), that's slightly below the last trading month's daily average range of 294 pips. Weekly volatility is also lower, being slightly below 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 White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on October 9th, CZKEUR actually lost -0.62% on the following trading day.
CZK/EUR managed to close above the 20-day moving average at 0.036829 for the first time since August 28th. Prices are trading close to the key technical resistance level at 0.037047 (R1).
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 "Up Close near high of period" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for CZK/EUR. Out of 329 times, CZKEUR closed lower 56.84% 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 54.41% with an average market move of -0.17%.