EURZAR pushes through Wednesday's high
Euro/South African Rand (EURZAR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
EURZAR ended Thursday at 19.1132 gaining 2471 pips (1.31%). Closing above Wednesday's high at 19.0603, the market confirmed its breakout through the previous session high after trading up to 2149 pips above it intraday.
Daily Candlestick Chart (EURZAR as at Mar 26, 2020):
Thursday's trading range has been 4742 pips (2.51%), that's slightly below the last trading month's daily average range of 5591 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EURZAR. Prices continued to consolidate within a tight trading range between 18.4527 and 19.2752 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on March 20th, EURZAR actually gained 1.55% on the following trading day.
Unable to break through the key technical resistance level at 19.1436 (R1), EUR/ZAR closed below it after spiking up to 19.2752 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for EUR/ZAR. Out of 576 times, EURZAR closed lower 53.47% 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 two trading days, showing a win rate of 52.43% with an average market move of -0.06%.
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