USDDKK breaks back above 20-day moving average
US Dollar/Danish Krone (USDDKK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDDKK ended Wednesday at 6.2965 gaining 160 pips (0.25%). Trading up to 184 pips lower after the open, the currency managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 6.2842, the pair confirmed its breakout through the prior session high after trading up to 305 pips above it intraday.
Daily Candlestick Chart (USDDKK as at Sep 16, 2020):
Wednesday's trading range has been 536 pips (0.85%), that's above the last trading month's daily average range of 459 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDDKK. Prices continued to consolidate within a tight trading range between 6.2435 and 6.3147 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The FX pair managed to close back above the 20-day moving average at 6.2853 for the first time since September 10th. When this moving average was crossed above the last time on September 7th, USDDKK gained 0.35% on the following trading day. Prices are trading close to the key technical resistance level at 6.3172 (R1).
Though the market 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 close-by swing high at 6.3315 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 6.2514 where further sell stops might get triggered. Further buying could move prices higher should the market test August's close-by high at 6.3669.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for USD/DKK. Out of 163 times, USDDKK closed higher 53.99% 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 55.21% with an average market move of 0.12%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more