USDCZK closes within previous day's range
US Dollar/Czech Koruna (USDCZK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
USDCZK finished the month -6.16% lower at 22.2793 after gaining 1432 pips (0.65%) today on high volume. Trading up to 1493 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 16th, USDCZK actually lost -0.54% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (USDCZK as at Jul 31, 2020):
Friday's trading range has been 3438 pips (1.55%), that's far above the last trading month's daily average range of 2566 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for USDCZK.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for USD/CZK. Out of 506 times, USDCZK closed lower 52.17% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.04% and AUDUSD closing -0.72% lower. On the flipside the best performers have been USDJPY closing 1.12% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.87% and GBPZAR closing 1.79% higher. The worst performers of the day have been NZDCAD tanking -1.15% and NZDHKD closing -1.05% lower. Read more