USDDKK breaks back below 100-day moving average
US Dollar/Danish Krone (USDDKK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, USDDKK finished Thursday at 6.7655 tanking 979 pips (-1.43%). This is the biggest single-day loss in over three years. The last time we've seen such an unusually strong single-day loss on March 9th, USDDKK actually gained 1.56% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 6.8558, the pair confirmed its breakout through the previous session low after trading up to 1071 pips below it intraday.
Daily Candlestick Chart (USDDKK as at Mar 26, 2020):
Thursday's trading range has been 1274 pips (1.86%), that's slightly above the last trading month's daily average range of 1095 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for USDDKK.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 6.7487 during the day, the forex pair found support at the 20-day moving average at 6.7578. The currency closed back below the 100-day moving average at 6.7659 for the first time since March 16th.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for USD/DKK. Out of 26 times, USDDKK closed higher 61.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 73.08% with an average market move of 0.47%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more