The USDCZK (U.S. dollar vs. Czech Koruna) exchange rate trades around 23.1 during Monday’s trading session. The U.S. dollar price significantly increased on Friday, crossing above the bullish flag and the 23.05 resistance.
USDCZK Forecast – February-5-2024
Technical indicators are signaling a bullish trend. The awesome oscillator‘s bars are green, but the RSI indicator is approaching the overbought area. Therefore, the USDCZK price has some room for further increase in value.
The Bullish Trend Analysis and Predictions
We zoom into the 4-hour chart to better understand the possible scenarios.
The USDCZK currency pair formed a long wick candlestick pattern in today’s trading session after the price reached as high as 23.27. The RSI indicator is crossing into the overbought area; therefore, we might encounter an overbought situation soon.
Since the pair broke the 23.05 resistance, the road to the 23.53, the October high, is paved. However, the market is saturated with buying pressure and might see some pullbacks. Therefore, we suggest waiting for a price to consolidate near the 23.6% level of Fibonacci retracement, the 23.0 mark.
Conversely, the bullish outlook should be invalidated if the USDCZK price falls below the 38.2% level of Fibonacci retracement, which is the 22.8 mark.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
