NOKUSD still stuck within tight trading range
Norwegian Krone/US Dollar (NOKUSD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NOKUSD finished Wednesday at 0.1108 flat. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NOKUSD as at Sep 16, 2020):
Wednesday's trading range has been 11 pips (0.99%), that's below the last trading month's daily average range of 16 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 0.1099 and 0.1120 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Gravestone Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on July 13th, NOKUSD actually gained 0.85% on the following trading day.
The forex pair found buyers again today around 0.1104 for the third trading day in a row after having found demand at 0.1104 in the prior session and at 0.1104 two days ago.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 0.1120 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Its common bearish interpretation has been confirmed for NOK/USD. Out of 165 times, NOKUSD closed lower 50.91% 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 53.94% with an average market move of -0.21%.