EURNOK closes lower for the 4th day in a row
Euro/Norwegian Krone (EURNOK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, EURNOK finished Thursday at 11.4850 losing 2108 pips (-1.8%). Trading 1261 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. The last time this happened on March 19th, EURNOK actually gained 4.09% on the following trading day. Closing below Wednesday's low at 11.6196, the forex pair confirmed its breakout through the prior session low after trading up to 1698 pips below it intraday.
Daily Candlestick Chart (EURNOK as at Mar 26, 2020):
Thursday's trading range has been 3721 pips (3.18%), that's slightly below the last trading month's daily average range of 4539 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for EURNOK.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 11.5997 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EUR/NOK. Out of 74 times, EURNOK closed higher 55.41% 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 52.70% with an average market move of 0.19%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more