EURDKK finds buyers at key support level
Euro/Danish Krone (EURDKK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
EURDKK ended the week 0.04% higher at 7.4576 after edging lower 1 pip (-0.0%) today. Trading up to 41 pips lower after the open, the FX pair 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.
Daily Candlestick Chart (EURDKK as at May 22, 2020):
Friday's trading range has been 87 pips (0.12%), that's far above the last trading month's daily average range of 59 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 bullish Outside Bar. The last time this happened on April 17th, EURDKK actually lost -0.06% on the following trading day. Additionally, five candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
After trading down to 7.4534 earlier during the day, EUR/DKK bounced off the key technical support level at 7.4539 (S1). The failure to close below the support could increase that levels importance as support going forward. After spiking up to 7.4621 during the day, the currency found resistance at the 20-day moving average at 7.4580.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for EUR/DKK. Out of 731 times, EURDKK closed lower 52.12% 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 53.35% with an average market move of -0.00%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more