EURNOK closes lower for the 2nd day in a row
Euro/Norwegian Krone (EURNOK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EURNOK ended Wednesday at 10.6592 losing 375 pips (-0.35%). Closing below Tuesday's low at 10.6849, the market confirmed its breakout through the previous session low after trading up to 420 pips below it intraday.
Daily Candlestick Chart (EURNOK as at Sep 16, 2020):
Wednesday's trading range has been 792 pips (0.74%), that's below the last trading month's daily average range of 1060 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EURNOK.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 9th, EURNOK actually gained 0.75% on the following trading day.
After trading as low as 10.6429 during the day, the forex pair found support at the 200-day moving average at 10.6591. Prices are trading close to the key technical resistance level at 10.7229 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 10.7461 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 10.6180 where further sell stops might get triggered. Trading close to July's high at 10.8325 we could see further upside momentum if potential buy stops at the level get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for EUR/NOK. Out of 31 times, EURNOK closed lower 67.74% 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 five trading days, showing a win rate of 64.52% with an average market move of -0.04%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more