CZKEUR closes below its opening price unable to hold early session gains


Czech Koruna/Euro (CZKEUR) Technical Analysis Report for Oct 21, 2020 | by Techniquant Editorial Team

Highlights

CZKEUR breaks back below 20-day moving average
CZKEUR closes below its opening price unable to hold early session gains
CZKEUR closes within previous day's range

Overview

CZKEUR finished Wednesday at 0.036718 losing 124 pips (-0.34%). Trading 140 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.

Daily Candlestick Chart (CZKEUR as at Oct 21, 2020):

Daily technical analysis candlestick chart for Czech Koruna/Euro (CZKEUR) as at Oct 21, 2020

Wednesday's trading range has been 293 pips (0.8%), that's slightly below the last trading month's daily average range of 297 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CZKEUR.

After moving higher in the previous session, the currency closed lower but above the prior day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on October 12th, CZKEUR lost -0.67% on the following trading day.

The market closed back below the 20-day moving average at 0.036813.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Among the six 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 0.00%.


Market Conditions for CZKEUR as at Oct 21, 2020

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