USDDKK stuck within tight trading range
US Dollar/Danish Krone (USDDKK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
USDDKK ended the month -1.17% lower at 6.6340 after edging higher 55 pips (0.08%) today on low volume. 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 (USDDKK as at Jun 30, 2020):
Tuesday's trading range has been 442 pips (0.67%), that's below the last trading month's daily average range of 586 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for USDDKK. Prices continued to consolidate within a tight trading range between 6.6023 and 6.6615 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 17th, USDDKK gained 0.38% on the following trading day.
Unable to break through the key technical resistance level at 6.6492 (R1), USD/DKK closed below it after spiking up to 6.6615 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Though the pair is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 6.6619 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 6.6023 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for USD/DKK. Out of 226 times, USDDKK closed lower 56.19% 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 49.12% with an average market move of -0.02%.
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