NOKUSD dominated by bulls lifting the market higher throughout the day
Norwegian Krone/US Dollar (NOKUSD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NOKUSD finished Thursday at 0.0961 gaining 30 pips (3.22%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 0.0937, the market confirmed its breakout through the previous session high after trading up to 25 pips above it intraday.
Daily Candlestick Chart (NOKUSD as at Mar 26, 2020):
Thursday's trading range has been 43 pips (4.62%), that's slightly above the last trading month's daily average range of 41 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for NOKUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 0.0919 earlier during the day, NOK/USD bounced off the key technical support level at 0.0926 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on March 11th, NOKUSD actually lost -4.65% on the following trading day. Prices are trading close to the key technical resistance level at 0.0969 (R1).
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/USD. Out of 73 times, NOKUSD closed lower 52.05% 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 64.38% with an average market move of -0.88%.