DKKEUR stuck within tight trading range
Danish Krone/Euro (DKKEUR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
DKKEUR ended the month 0.04% higher at 0.13419 after flat today on low volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DKKEUR as at Jun 30, 2020):
Tuesday's trading range has been 5 pips (0.04%), that's slightly below the last trading month's daily average range of 11 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for DKKEUR. Prices continued to consolidate within a tight trading range between 0.13411 and 0.13423 where it has been caught now for the last three trading days.
Despite a strong opening the FX pair closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, five candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern, three bearish patterns, the Hanging Man, the Last Engulfing Top Pattern and the Northern Doji and one neutral pattern, the Doji. The last time a Last Engulfing Top Pattern showed up on June 12th, DKKEUR lost -0.01% on the following trading day.
Unable to break through the key technical resistance level at 0.13420 (R1), the pair closed below it after spiking up to 0.13420 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 0.13416 in the previous session, DKK/EUR found buyers again around the same price level today at 0.13415.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 0.13414.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to June's low at 0.13402, downside momentum could speed up should the market mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for DKK/EUR. Out of 52 times, DKKEUR closed lower 51.92% 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 63.46% with an average market move of -0.01%.