NOKUSD closes within prior day's range after lackluster session
Norwegian Krone/US Dollar (NOKUSD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
NOKUSD finished the week 0.56% higher at 0.1081 after flat today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NOKUSD as at Feb 14, 2020):
Friday's trading range has been 6 pips (0.56%), that's far 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 NOKUSD. Prices continued to consolidate within a tight trading range between 0.1074 and 0.1087 where it has been caught now for the whole last trading week.
Five candlestick patterns are matching today's price action, the Southern Doji and the Tweezer Bottom which are both known as bullish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Southern Doji showed up on February 6th, NOKUSD actually lost -0.92% on the following trading day.
Prices are trading close to the key technical support level at 0.1075 (S1). After having been unable to move lower than 0.1078 in the prior session, the pair found buyers again around the same price level today at 0.1078.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 0.1087 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 0.1075 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Rickshaw-Man" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for NOK/USD. Out of 38 times, NOKUSD closed higher 60.53% 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 four trading days, showing a win rate of 52.63% with an average market move of 0.13%.