CZKUSD dominated by bulls lifting the market higher throughout the day
Czech Koruna/US Dollar (CZKUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CZKUSD ended Thursday at 0.040591 gaining 917 pips (2.31%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 0.039789, CZK/USD confirmed its breakout through the prior session high after trading up to 903 pips above it intraday.
Daily Candlestick Chart (CZKUSD as at Mar 26, 2020):
Thursday's trading range has been 1106 pips (2.79%), that's slightly above the last trading month's daily average range of 1015 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CZKUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 0.039871 (now S1), which is likely to act as support going forward. The last time this happened on March 5th, CZKUSD gained 0.40% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for CZK/USD. Out of 165 times, CZKUSD closed lower 55.15% 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 52.73% with an average market move of -0.07%.