EURZAR finds buyers again around 19.3110
Euro/South African Rand (EURZAR) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
EURZAR ended Monday at 19.3403 losing 1398 pips (-0.72%). Closing below Friday's low at 19.3465, the pair confirmed its breakout through the prior session low after trading up to 355 pips below it intraday.
Daily Candlestick Chart (EURZAR as at Jun 01, 2020):
Monday's trading range has been 2629 pips (1.35%), that's below the last trading month's daily average range of 3194 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 EURZAR.
Notwithstanding a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on May 4th, EURZAR lost -0.92% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 19.3465 in the prior session, EUR/ZAR found buyers again around the same price level today at 19.3110.
Although the forex pair is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 19.6417 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 19.0180 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Its common bearish interpretation has been confirmed for EUR/ZAR. Out of 84 times, EURZAR closed lower 53.57% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are AUDUSD gaining 1.93% and NZDUSD closing 1.43% higher. On the flipside the worst performers have been USDCAD closing -1.43% lower and USDJPY losing -0.21%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been AUDHKD surging 1.93% and AUDCHF closing 1.9% higher. The worst performers of the day have been EURAUD tanking -1.65% and USDPLN closing -1.36% lower. Read more