EURTRY closes higher for the 2nd day in a row
Euro/Turkish Lira (EURTRY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EURTRY finished Thursday at 7.0625 gaining 782 pips (1.12%). Closing above Wednesday's high at 7.0113, the FX pair confirmed its breakout through the prior session high after trading up to 918 pips above it intraday.
Daily Candlestick Chart (EURTRY as at Mar 26, 2020):
Thursday's trading range has been 1275 pips (1.83%), that's slightly below the last trading month's daily average range of 1383 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 EURTRY.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on March 16th, EURTRY actually lost -2.18% on the following trading day.
Prices are trading close to the key technical support level at 6.9581 (S1). Prices are trading close to the key technical resistance level at 7.1117 (R1).
While EUR/TRY is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 7.1310 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for EUR/TRY. Out of 259 times, EURTRY closed higher 47.49% 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 55.60% with an average market move of 0.67%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more