DKKEUR pops to highest close since December 27, 2019
Danish Krone/Euro (DKKEUR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DKKEUR ended the week 0.02% higher at 0.13386 after surging 2 pips (0.01%) today on high volume. This is the biggest single-day gain in over a month. Today's close at 0.13386 marks the highest recorded closing price since December 27, 2019. Trading up to 9 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 0.13385, the forex pair confirmed its breakout through the prior session high after trading up to 8 pips above it intraday.
Daily Candlestick Chart (DKKEUR as at Feb 14, 2020):
Friday's trading range has been 18 pips (0.13%), that's far above the last trading month's daily average range of 7 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DKKEUR.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on January 20th, DKKEUR actually lost -0.01% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
The FX pair managed to close above the 100-day moving average at 0.13384 for the first time since September 12, 2019. After spiking up to 0.13393 during the day, the pair found resistance at the 200-day moving average at 0.13390.
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 although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 0.13383.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 16 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for DKK/EUR. Out of 188 times, DKKEUR closed lower 53.19% 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 60.11% with an average market move of -0.01%.