EURNOK closes below its opening price unable to hold early session gains
Euro/Norwegian Krone (EURNOK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, EURNOK finished the week -1.62% lower at 10.0156 after edging lower 116 pips (-0.12%) today on low volume. Today's close at 10.0156 marks the lowest recorded closing price since January 24th. Trading 303 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 10.0164, the currency confirmed its breakout through the previous session low after trading up to 115 pips below it intraday.
Daily Candlestick Chart (EURNOK as at Feb 14, 2020):
Friday's trading range has been 532 pips (0.53%), that's far below the last trading month's daily average range of 814 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EURNOK.
Unable to break through the key technical resistance level at 10.0519 (R1), the forex pair closed below it after spiking up to 10.0581 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 10.0164 in the prior session, the market found buyers again around the same price level today at 10.0049.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for EUR/NOK. Out of 31 times, EURNOK closed lower 54.84% 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 two trading days, showing a win rate of 54.84% with an average market move of -0.02%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more