EURCZK finds support at 20-day moving average
Euro/Czech Koruna (EURCZK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EURCZK finished the month -1.01% lower at 26.6708 after tanking 1074 pips (-0.4%) today on low volume. This is the biggest single-day loss in over four weeks. The last time we've seen such an unusually strong single-day loss on June 1st, EURCZK lost -0.59% on the following trading day. Trading 869 pips higher after the open, the forex pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Monday's low at 26.7164, EUR/CZK confirmed its breakout through the prior session low after trading up to 1085 pips below it intraday.
Daily Candlestick Chart (EURCZK as at Jun 30, 2020):
Tuesday's trading range has been 2528 pips (0.94%), that's above the last trading month's daily average range of 1945 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EURCZK.
After trading as low as 26.6079 during the day, the currency found support at the 20-day moving average at 26.6608. The FX pair closed back below the 100-day moving average at 26.7123 for the first time since June 23rd.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
As prices are trading close to June's high at 26.9668, upside momentum could accelerate should the pair mark new highs for the month. As prices are trading close to June's low at 26.4768, downside momentum might speed up should EURCZK mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for EUR/CZK. Out of 187 times, EURCZK closed higher 59.89% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.55% with an average market move of 0.09%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more