SEKEUR runs into sellers around 0.0964 for the third day in a row
Swedish Krona/Euro (SEKEUR) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
SEKEUR ended Monday at 0.0958 losing 4 pips (-0.42%) on low volume. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SEKEUR as at Jul 13, 2020):
Monday's trading range has been 7 pips (0.73%), that's slightly above the last trading month's daily average range of 7 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SEKEUR.
In spite of a strong opening the currency closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Tweezer Top showed up on July 10th, SEKEUR actually lost -0.42% on the following trading day.
The pair ran into sellers again today around 0.0964 for the third trading day in a row after having found sellers at 0.0964 in the prior session and at 0.0964 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 0.0956 where further sell stops might get triggered. 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 eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for SEK/EUR. Out of 474 times, SEKEUR closed higher 53.38% 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 54.01% with an average market move of 0.16%.