DKKUSD closes lower for the 2nd day in a row
Danish Krone/US Dollar (DKKUSD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DKKUSD ended the week 0.62% higher at 0.1461 after losing 7 pips (-0.48%) today. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 0.1467, the FX pair confirmed its breakout through the prior session low after trading up to 8 pips below it intraday.
Daily Candlestick Chart (DKKUSD as at May 22, 2020):
Friday's trading range has been 10 pips (0.68%), 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 slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DKKUSD.
One bearish candlestick pattern matches today's price action, the Black Candle.
Although the pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further buying might move prices higher should the market test April's close-by high at 0.1479. As prices are trading close to May's low at 0.1443, downside momentum could speed up should the currency mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for DKK/USD. Out of 567 times, DKKUSD closed higher 48.85% of the time on the next trading day after the market condition occurred.