EURSEK closes higher for the 2nd day in a row
Euro/Swedish Krona (EURSEK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EURSEK ended the week -0.39% lower at 10.5312 after gaining 447 pips (0.43%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 10.5029, the market confirmed its breakout through the prior session high after trading up to 407 pips above it intraday.
Daily Candlestick Chart (EURSEK as at Feb 14, 2020):
Friday's trading range has been 641 pips (0.61%), that's above the last trading month's daily average range of 528 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EURSEK.
One bullish candlestick pattern matches today's price action, the White Candle.
The currency managed to close back above the 50-day moving average at 10.5245. When this moving average was crossed above the last time on January 24th, EURSEK gained 0.51% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 10.4509, downside momentum might speed up should the FX pair break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for EUR/SEK. Out of 474 times, EURSEK closed lower 55.06% 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 10 trading days, showing a win rate of 58.23% with an average market move of -0.21%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and CADCHF closing 0.41% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more