EURZAR closes higher for the 3rd day in a row
Euro/South African Rand (EURZAR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EURZAR finished the month 0.07% higher at 19.4932 after gaining 761 pips (0.39%) today. 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 (EURZAR as at Jun 30, 2020):
Tuesday's trading range has been 1917 pips (0.99%), that's below the last trading month's daily average range of 2993 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.
Prices are trading close to the key technical resistance level at 19.6417 (R1). After having been unable to move lower than 19.3386 in the previous session, EUR/ZAR found buyers again around the same price level today at 19.3749. The last time this happened on June 26th, EURZAR gained 0.10% on the following trading day.
The forex pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the nearby swing high at 19.6950 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 19.2098 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for EUR/ZAR. Out of 739 times, EURZAR closed lower 53.18% 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 GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more