SEKEUR runs into sellers around 0.0957 for the forth day in a row
Swedish Krona/Euro (SEKEUR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
SEKEUR ended the month unchanged at 0.0955 after gaining 2 pips (0.21%) today. Trading up to 3 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 4th, SEKEUR gained 0.52% on the following trading day. 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 (SEKEUR as at Jun 30, 2020):
Tuesday's trading range has been 7 pips (0.73%), that's below the last trading month's daily average range of 8 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SEKEUR. Prices continued to consolidate within a tight trading range between 0.0947 and 0.0958 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The pair managed to close back above the 20-day moving average at 0.0954. Prices are trading close to the key technical resistance level at 0.0958 (R1). The currency was sold again around 0.0957 after having seen highs at 0.0957, 0.0958 and 0.0957 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 0.0958 where further buy stops might get activated. With prices trading close to this year's high at 0.0966, upside momentum could speed up should SEK/EUR be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for SEK/EUR. Out of 378 times, SEKEUR closed lower 50.26% 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 57.41% with an average market move of -0.19%.