DKKEUR finds support at 20-day moving average
Danish Krone/Euro (DKKEUR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
DKKEUR finished the week -0.04% lower at 0.13409 after flat today. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DKKEUR as at May 22, 2020):
Friday's trading range has been 16 pips (0.12%), that's far above the last trading month's daily average range of 11 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DKKEUR.
Five candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Gravestone Doji and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Gravestone Doji showed up on April 17th, DKKEUR actually gained 0.05% on the following trading day.
After trading as low as 0.13401 during the day, the market found support at the 20-day moving average at 0.13408. Unable to break through the key technical resistance level at 0.13416 (R1), DKK/EUR closed below it after spiking up to 0.13417 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for DKK/EUR. Out of 138 times, DKKEUR closed lower 42.75% 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 50.72% with an average market move of -0.00%.