ZAREUR closes lower for the 2nd day in a row
South African Rand/Euro (ZAREUR) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ZAREUR finished the month 4.06% higher at 0.0513 after losing 3 pips (-0.58%) today on high volume. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ZAREUR as at May 29, 2020):
Friday's trading range has been 8 pips (1.55%), that's slightly below the last trading month's daily average range of 8 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ZAREUR.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Monday, ZAREUR actually gained 0.58% on the following trading day.
Though ZAR/EUR is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for ZAR/EUR. Out of 295 times, ZAREUR closed higher 50.51% of the time on the next trading day after the market condition occurred.