NOKEUR closes higher for the 4th day in a row
Norwegian Krone/Euro (NOKEUR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NOKEUR ended Thursday at 0.0871 gaining 16 pips (1.87%). Trading up to 9 pips lower after the open, NOK/EUR managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 19th, NOKEUR actually lost -3.86% on the following trading day. Closing above Wednesday's high at 0.0861, the market confirmed its breakout through the prior session high after trading up to 12 pips above it intraday.
Daily Candlestick Chart (NOKEUR as at Mar 26, 2020):
Thursday's trading range has been 27 pips (3.16%), that's slightly below the last trading month's daily average range of 33 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 significantly higher than usual for NOKEUR.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 0.0862 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for NOK/EUR. Out of 52 times, NOKEUR closed lower 53.85% 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 51.92% with an average market move of -0.12%.