NOKEUR closes higher for the 2nd day in a row
Norwegian Krone/Euro (NOKEUR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NOKEUR ended Wednesday at 0.0938 gaining 3 pips (0.32%). Closing above Tuesday's high at 0.0936, the FX pair confirmed its breakout through the prior session high after trading up to 4 pips above it intraday.
Daily Candlestick Chart (NOKEUR as at Sep 16, 2020):
Wednesday's trading range has been 7 pips (0.75%), that's below the last trading month's daily average range of 9 pips. Weekly volatility is also lower, being way 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 0.0931 and 0.0942 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on September 9th, NOKEUR actually lost -0.75% on the following trading day.
Prices are trading close to the key technical resistance level at 0.0942 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the nearby swing high at 0.0942 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 0.0931 where further sell stops might get activated. Trading close to July's low at 0.0923 we could see further downside momentum if potential sell stops at the level get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for NOK/EUR. Out of 748 times, NOKEUR closed lower 48.66% 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 50.40% with an average market move of -0.14%.