EURSEK closes below its opening price unable to hold early session gains


Euro/Swedish Krona (EURSEK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team

Highlights

EURSEK finds buyers around 10.5174 for the third day in a row
EURSEK closes below its opening price unable to hold early session gains
EURSEK stuck within tight trading range
EURSEK closes within previous day's range after lackluster session

Overview

EURSEK finished the week -1.37% lower at 10.5282 after edging lower 20 pips (-0.02%) today. Trading 361 pips higher after the open, EUR/SEK was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, EURSEK lost -0.58% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (EURSEK as at May 22, 2020):

Daily technical analysis candlestick chart for Euro/Swedish Krona (EURSEK) as at May 22, 2020

Friday's trading range has been 569 pips (0.54%), that's below the last trading month's daily average range of 920 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EURSEK. Prices continued to consolidate within a tight trading range between 10.5116 and 10.5962 where it has been caught now for the last three trading days.

One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.

The market found buyers again today around 10.5174 for the third trading day in a row after having found demand at 10.5116 in the prior session and at 10.5138 two days ago.

Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.

Selling might speed up should prices move below the nearby swing low at 10.5116 where further sell stops could get triggered. With prices trading close to this year's low at 10.4509, downside momentum might accelerate should the FX pair break out to new lows for the year. Trading close to March's low at 10.4879 we could see further downside momentum if potential sell stops at the level get activated.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EUR/SEK. Out of 476 times, EURSEK closed higher 52.94% 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 57.56% with an average market move of 0.18%.

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


Market Conditions for EURSEK as at May 22, 2020

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