USDCZK pushes through Thursday's high
US Dollar/Czech Koruna (USDCZK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
USDCZK finished the week -2.31% lower at 25.0251 after surging 2688 pips (1.09%) today on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 24.9608, the market confirmed its breakout through the prior session high after trading up to 1677 pips above it intraday.
Daily Candlestick Chart (USDCZK as at May 22, 2020):
Friday's trading range has been 3815 pips (1.54%), that's above the last trading month's daily average range of 3183 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDCZK.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 24.7913 (now S1), which is likely to act as support going forward. The last time this happened on May 11th, USDCZK actually lost -0.57% on the following trading day. After spiking up to 25.1285 during the day, the forex pair found resistance at the 50-day moving average at 25.1168.
Though the FX 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.
Further selling might move prices lower should the market test April's close-by low at 24.3998.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for USD/CZK. Out of 535 times, USDCZK closed lower 53.64% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDHUF surging 0.9% and EURCZK closing 0.63% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more