EURDKK breaks above 20-day moving average for the first time since June 19th
Euro/Danish Krone (EURDKK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EURDKK finished the month -0.06% lower at 7.4476 after surging 29 pips (0.04%) today on high volume. Today's close at 7.4476 marks the highest recorded closing price since July 9th. Closing above Thursday's high at 7.4448, the market confirmed its breakout through the prior session high after trading up to 48 pips above it intraday.
Daily Candlestick Chart (EURDKK as at Jul 31, 2020):
Friday's trading range has been 74 pips (0.1%), that's far above the last trading month's daily average range of 45 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for EURDKK.
The pair managed to close above the 20-day moving average at 7.4450 for the first time since June 19th. After having been unable to move lower than 7.4416 in the previous session, EUR/DKK found buyers again around the same price level today at 7.4422. The last time this happened on Wednesday, EURDKK gained 0.04% on the following trading day.
Although the currency is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to July's high at 7.4535, upside momentum might accelerate should the FX pair mark new highs for the month. As prices are trading close to July's low at 7.4404, downside momentum could speed up should the forex pair mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for EUR/DKK. Out of 186 times, EURDKK closed lower 54.30% 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 51.61% with an average market move of -0.00%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more