CZKUSD slips to lowest close since July 23rd
Czech Koruna/US Dollar (CZKUSD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CZKUSD finished Wednesday at 0.044241 edging lower 17 pips (-0.04%) on high volume. Today's close at 0.044241 marks the lowest recorded closing price since July 23rd. Trading 186 pips higher after the open, the 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 in a lackluster session.
Daily Candlestick Chart (CZKUSD as at Sep 16, 2020):
Wednesday's trading range has been 330 pips (0.75%), that's below the last trading month's daily average range of 433 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CZKUSD.
Six candlestick patterns are matching today's price action, the Bullish Doji Star and the Southern Doji which are both known as bullish patterns, one bearish pattern, the Gravestone Doji and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Rickshaw-Man showed up on March 4th, CZKUSD gained 0.48% on the following trading day.
While the FX pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 0.044675 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Doji Star" stand out. Its common bullish interpretation has been confirmed for CZK/USD. Out of 4 times, CZKUSD closed higher 75.00% 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 75.00% with an average market move of 0.69%.