DKKUSD rockets 1.44% closing 21 pips higher
Danish Krone/US Dollar (DKKUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, DKKUSD finished Thursday at 0.1478 surging 21 pips (1.44%). This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on March 9th, DKKUSD actually lost -1.50% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 0.1459, the market confirmed its breakout through the prior session high after trading up to 23 pips above it intraday.
Daily Candlestick Chart (DKKUSD as at Mar 26, 2020):
Thursday's trading range has been 28 pips (1.92%), that's above the last trading month's daily average range of 24 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for DKKUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
The forex pair managed to close back above the 50-day moving average at 0.1472 for the first time since March 16th. After spiking up to 0.1482 during the day, DKK/USD found resistance at the 100-day moving average at 0.1478.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for DKK/USD. Out of 23 times, DKKUSD closed lower 65.22% 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 69.57% with an average market move of -0.41%.