EURNOK closes higher for the 2nd day in a row
Euro/Norwegian Krone (EURNOK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EURNOK finished the week -1.58% lower at 10.8990 after edging higher 133 pips (0.12%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EURNOK as at May 22, 2020):
Friday's trading range has been 1434 pips (1.32%), that's slightly below the last trading month's daily average range of 1438 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 EURNOK. Prices continued to consolidate within a tight trading range between 10.8527 and 11.0147 where it has been caught now for the last three trading days.
The pair was bought again around 10.8713 after having seen lows at 10.8527, 10.8685 and 10.8572 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on March 31st, EURNOK actually lost -0.08% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by swing low at 10.8527 where further sell stops might get activated.
Among the six 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 EUR/NOK. Out of 843 times, EURNOK closed higher 52.55% 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 54.69% with an average market move of 0.25%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more