EURDKK finds buyers around 7.4388 for the forth day in a row
Euro/Danish Krone (EURDKK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EURDKK finished Wednesday at 7.4402 losing 2 pips (-0.0%). 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 (EURDKK as at Sep 16, 2020):
Wednesday's trading range has been 20 pips (0.03%), that's below the last trading month's daily average range of 30 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EURDKK. Prices continued to consolidate within a tight trading range between 7.4388 and 7.4418 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
The currency was bought again around 7.4388 after having seen lows at 7.4392, 7.4391 and 7.4392 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on July 24th, EURDKK gained 0.02% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 7.4418 where further buy stops might get activated. As prices are trading close to September's high at 7.4449, upside momentum could speed up should the FX pair mark new highs for the month. As prices are trading close to September's low at 7.4385, downside momentum might accelerate 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 OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for EUR/DKK. Out of 131 times, EURDKK closed higher 48.09% 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 10 trading days, showing a win rate of 58.02% with an average market move of 0.01%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more