EURDKK closes below its opening price unable to hold early session gains
Euro/Danish Krone (EURDKK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EURDKK ended the month -0.04% lower at 7.4522 after edging higher 1 pip (0.0%) today on low volume. Trading 19 pips higher after the open, EUR/DKK was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EURDKK as at Jun 30, 2020):
Tuesday's trading range has been 27 pips (0.04%), that's slightly below the last trading month's daily average range of 61 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for EURDKK. Prices continued to consolidate within a tight trading range between 7.4501 and 7.4567 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Bearish Hikkake Pattern and one neutral pattern, the Doji. The last time a Doji showed up on June 25th, EURDKK lost -0.02% on the following trading day.
Prices are trading close to the key technical support level at 7.4514 (S1). After having been unable to move lower than 7.4512 in the previous session, the FX pair found buyers again around the same price level today at 7.4515.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 7.4548.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to June's high at 7.4613, upside momentum might accelerate should the market mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EUR/DKK. Out of 659 times, EURDKK closed higher 54.93% 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 eight trading days, showing a win rate of 56.15% with an average market move of 0.00%.
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