NOKUSD breaks below Thursday's low
Norwegian Krone/US Dollar (NOKUSD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NOKUSD finished the week 2.35% higher at 0.1000 after losing 6 pips (-0.6%) today on low volume. Closing below Thursday's low at 0.1001, the market confirmed its breakout through the prior session low after trading up to 11 pips below it intraday.
Daily Candlestick Chart (NOKUSD as at May 22, 2020):
Friday's trading range has been 17 pips (1.69%), that's slightly above the last trading month's daily average range of 15 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NOKUSD.
Although 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 0.1012 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for NOK/USD. Out of 305 times, NOKUSD closed lower 52.79% 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 47.54% with an average market move of -0.07%.