NOKEUR closes lower for the 2nd day in a row
Norwegian Krone/Euro (NOKEUR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NOKEUR finished the week 1.66% higher at 0.0918 after edging lower 1 pip (-0.11%) today. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NOKEUR as at May 22, 2020):
Friday's trading range has been 12 pips (1.31%), that's slightly above the last trading month's daily average range of 12 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NOKEUR. Prices continued to consolidate within a tight trading range between 0.0908 and 0.0921 where it has been caught now for the last three trading days.
Regardless of a strong opening the forex pair closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on May 15th, NOKEUR actually gained 1.22% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns.
The pair was sold again around 0.0920 after having seen highs at 0.0921, 0.0920 and 0.0921 in the last three trading sessions. Obviously there is something going on at that level.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 0.0921 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for NOK/EUR. Out of 48 times, NOKEUR closed lower 54.17% 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 52.08% with an average market move of -0.29%.