NOKEUR closes above its opening price after recovering from early selling pressure
Norwegian Krone/Euro (NOKEUR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
NOKEUR finished the week 1.63% higher at 0.0998 after edging higher 1 pip (0.1%) today on low volume. Today's close at 0.0998 marks the highest recorded closing price since January 24th. Trading up to 3 pips lower after the open, the pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 6th, NOKEUR actually lost -0.61% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NOKEUR as at Feb 14, 2020):
Friday's trading range has been 6 pips (0.6%), that's below the last trading month's daily average range of 8 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NOKEUR.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
After trading down to 0.0994 earlier during the day, NOK/EUR bounced off the key technical support level at 0.0997 (S1). The failure to close below the support could increase that levels significance as support going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for NOK/EUR. Out of 124 times, NOKEUR closed lower 52.42% 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 62.10% with an average market move of -0.38%.