CZKUSD breaks above 100-day moving average for the first time since March 11th


Czech Koruna/US Dollar (CZKUSD) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team

Highlights

CZKUSD breaks above 100-day moving average for the first time since March 11th
CZKUSD rises to highest close since March 13th
CZKUSD dominated by bulls lifting the market higher throughout the day
CZKUSD closes higher for the 3rd day in a row
CZKUSD pushes through Friday's high

Overview

Moving higher for the 3rd day in a row, CZKUSD finished Monday at 0.041636 gaining 418 pips (1.01%). Today's close at 0.041636 marks the highest recorded closing price since March 13th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.041419, the FX pair confirmed its breakout through the previous session high after trading up to 230 pips above it intraday.

Daily Candlestick Chart (CZKUSD as at Jun 01, 2020):

Daily technical analysis candlestick chart for Czech Koruna/US Dollar (CZKUSD) as at Jun 01, 2020

Monday's trading range has been 471 pips (1.14%), that's slightly below the last trading month's daily average range of 518 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CZKUSD.

One bullish candlestick pattern matches today's price action, the White Candle.

The market managed to close above the 100-day moving average at 0.041596 for the first time since March 11th. When this moving average was crossed above the last time on March 2nd, CZKUSD gained 0.79% on the following trading day.

With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 0.040032.

Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.

Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for CZK/USD. Out of 61 times, CZKUSD closed higher 52.46% 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 eight trading days, showing a win rate of 59.02% with an average market move of 0.16%.


Market Conditions for CZKUSD as at Jun 01, 2020

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