TRYEUR closes lower for the 2nd day in a row
Turkish Lira/Euro (TRYEUR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TRYEUR ended Thursday at 0.1416 losing 16 pips (-1.12%). Closing below Wednesday's low at 0.1426, the market confirmed its breakout through the prior session low after trading up to 18 pips below it intraday.
Daily Candlestick Chart (TRYEUR as at Mar 26, 2020):
Thursday's trading range has been 26 pips (1.82%), that's slightly below the last trading month's daily average range of 28 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 TRYEUR.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on March 16th, TRYEUR gained 2.23% on the following trading day.
Prices are trading close to the key technical support level at 0.1406 (S1).
While the currency is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the nearby swing low at 0.1402 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for TRY/EUR. Out of 257 times, TRYEUR closed lower 47.08% 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 10 trading days, showing a win rate of 56.03% with an average market move of -0.58%.