SEKEUR dominated by bears dragging the market lower throughout the day
Swedish Krona/Euro (SEKEUR) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
SEKEUR ended Wednesday at 0.0947 losing 3 pips (-0.32%) on low volume. The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (SEKEUR as at Jan 15, 2020):
Wednesday's trading range has been 4 pips (0.42%), that's far below the last trading month's daily average range of 5 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SEKEUR.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 0.0945 (S1). SEK/EUR closed back below the 50-day moving average at 0.0948. When this moving average was crossed below the last time on January 10th, SEKEUR actually gained 0.32% on the following trading day.
Although the forex pair is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 0.0951 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 0.0944 where further sell stops could get triggered. With prices trading close to this year's high at 0.0957, upside momentum might accelerate should the currency be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for SEK/EUR. Out of 73 times, SEKEUR closed higher 49.32% 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 10 trading days, showing a win rate of 57.53% with an average market move of 0.22%.