EURNOK fails to close above 50-day moving average
Euro/Norwegian Krone (EURNOK) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EURNOK ended the week -0.56% lower at 10.6591 after edging higher 51 pips (0.05%) today on high volume. Trading up to 394 pips lower after the open, the pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EURNOK as at Aug 07, 2020):
Friday's trading range has been 931 pips (0.87%), that's slightly below the last trading month's daily average range of 1023 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.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
The forex pair managed to close back above the 20-day moving average at 10.6575. When this moving average was crossed above the last time on July 30th, EURNOK actually lost -0.33% on the following trading day. After spiking up to 10.7009 during the day, EUR/NOK found resistance at the 50-day moving average at 10.6914. The market found buyers again today around 10.6078 for the third trading day in a row after having found demand at 10.6038 in the previous session and at 10.6120 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 10.6038 where further sell stops might get triggered. Further buying could move prices higher should the market test July's close-by high at 10.8325. Further selling might move prices lower should the market test July's nearby low at 10.4644.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for EUR/NOK. Out of 436 times, EURNOK closed lower 53.67% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.33% and AUDUSD closing -1.06% lower. On the flipside the best performers have been USDCAD closing 0.57% higher and USDJPY gaining 0.36%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDZAR surging 1.26% and CHFZAR closing 0.97% higher. The worst performers of the day have been NZDHKD tanking -1.33% and AUDHKD closing -1.08% lower. Read more