EURDKK slides to lowest close since December 27, 2019
Euro/Danish Krone (EURDKK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EURDKK finished the week -0.02% lower at 7.4707 after tanking 10 pips (-0.01%) today on high volume. This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on January 31st, EURDKK actually gained 0.01% on the following trading day. Today's close at 7.4707 marks the lowest recorded closing price since December 27, 2019. Trading 52 pips higher after the open, the currency was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 7.4712, the forex pair confirmed its breakout through the prior session low after trading up to 45 pips below it intraday.
Daily Candlestick Chart (EURDKK as at Feb 14, 2020):
Friday's trading range has been 102 pips (0.14%), that's far above the last trading month's daily average range of 37 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EURDKK.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
After trading as low as 7.4667 during the day, the FX pair found support at the 200-day moving average at 7.4681. The pair closed below the 100-day moving average at 7.4716 for the first time since September 12, 2019.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 7.4724.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EUR/DKK. Out of 147 times, EURDKK closed higher 63.95% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more