DKKEUR surges, gaining 9 pips (0.07%) within a single day on high volume
Danish Krone/Euro (DKKEUR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
DKKEUR finished Thursday at 0.13398 surging 9 pips (0.07%) on high volume. This is the biggest single-day gain in over a year. Today's close at 0.13398 marks the highest recorded closing price since September 12, 2019. Closing above Wednesday's high at 0.13397, the FX pair confirmed its breakout through the prior session high after trading up to 4 pips above it intraday.
Daily Candlestick Chart (DKKEUR as at Mar 26, 2020):
Thursday's trading range has been 15 pips (0.11%), that's slightly above the last trading month's daily average range of 15 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DKKEUR. Prices continued to consolidate within a tight trading range between 0.13384 and 0.13402 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and two bearish patterns, the Bearish Hikkake Pattern and the Last Engulfing Top Pattern.
The forex pair managed to close back above the 200-day moving average at 0.13390. When this moving average was crossed above the last time on Tuesday, DKKEUR actually lost -0.04% on the following trading day. Unable to break through the key technical resistance level at 0.13399 (R1), the pair closed below it after spiking up to 0.13401 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. DKK/EUR found buyers again today around 0.13386 for the third trading day in a row after having found demand at 0.13385 in the previous session and at 0.13384 two days ago.
Crossing above the upper Bollinger Band for the first time since Tuesday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.13385 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 0.13402 where further buy stops could get activated. 2019's high at 0.13416 is within reach and we might see further upside momentum should the market manage to break out beyond.
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. Although it is usually interpreted as bullish, it has actually shown to be bearish for DKK/EUR. Out of 191 times, DKKEUR closed lower 52.88% 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 60.73% with an average market move of -0.01%.