ZAREUR finds buyers again around 0.0511
South African Rand/Euro (ZAREUR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, ZAREUR finished the month unchanged at 0.0513 after losing 2 pips (-0.39%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ZAREUR as at Jun 30, 2020):
Tuesday's trading range has been 5 pips (0.97%), that's 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 slightly lower than usual for ZAREUR.
Prices are trading close to the key technical support level at 0.0510 (S1). After having been unable to move lower than 0.0512 in the previous session, the forex pair found buyers again around the same price level today at 0.0511. The last time this happened on June 25th, ZAREUR actually lost -0.77% on the following trading day.
The pair shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the nearby swing low at 0.0508 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for ZAR/EUR. Out of 681 times, ZAREUR closed higher 49.93% 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 seven trading days, showing a win rate of 54.63% with an average market move of 0.11%.