EURNOK unable to break through key resistance level
Euro/Norwegian Krone (EURNOK) Technical Analysis Report for Jul 03, 2020 | by Techniquant Editorial Team
EURNOK ended the week -2.24% lower at 10.6585 after losing 545 pips (-0.51%) today on low volume. Today's close at 10.6585 marks the lowest recorded closing price since June 10th. 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 (EURNOK as at Jul 03, 2020):
Friday's trading range has been 845 pips (0.79%), that's far below the last trading month's daily average range of 1589 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.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bearish Short Candle showed up on June 8th, EURNOK actually gained 0.60% on the following trading day.
Unable to break through the key technical resistance level at 10.7154 (R1), the forex pair closed below it after spiking up to 10.7335 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 10.6452 in the prior session, the currency found buyers again around the same price level today at 10.6490.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the close-by swing low at 10.6452 where further sell stops could get activated. Further selling might move prices lower should the market test June's nearby low at 10.4292.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for EUR/NOK. Out of 54 times, EURNOK closed higher 61.11% 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 64.81% with an average market move of 0.44%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are NZDUSD gaining 0.35% and AUDUSD closing 0.2% higher. On the flipside the worst performers have been USDCAD closing -0.1% lower and USDCHF losing -0.01%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been EURHUF surging 0.57% and USDHUF closing 0.44% higher. The worst performers of the day have been USDNOK tanking -0.6% and USDMXN closing -0.4% lower. Read more