EURCZK unable to break through key resistance level
Euro/Czech Koruna (EURCZK) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
EURCZK finished the week -0.24% lower at 27.2154 after edging higher 202 pips (0.07%) today on low volume. Trading up to 734 pips lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EURCZK as at Oct 23, 2020):
Friday's trading range has been 1532 pips (0.56%), that's below the last trading month's daily average range of 2124 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EURCZK. Prices continued to consolidate within a tight trading range between 27.0487 and 27.3745 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Doji, the Long-Legged Doji and the Rickshaw-Man which are known as neutral patterns.
Unable to break through the key technical resistance level at 27.2609 (R1), EUR/CZK closed below it after spiking up to 27.2901 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 27.1620 in the previous session, the currency found buyers again around the same price level today at 27.1369. The last time this happened on Monday, EURCZK actually lost -0.52% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 27.3082 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 27.0487 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for EUR/CZK. Out of 731 times, EURCZK closed lower 53.76% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.33% and USDCHF closing -0.31% lower. On the flipside the best performers have been EURUSD closing 0.36% higher and AUDUSD gaining 0.31%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been EURGBP surging 0.71% and EURSGD closing 0.47% higher. The worst performers of the day have been GBPPLN tanking -0.81% and GBPCHF closing -0.65% lower. Read more