SEKEUR finds buyers around 0.0959 for the third day in a row
Swedish Krona/Euro (SEKEUR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SEKEUR ended Wednesday at 0.0962 gaining 2 pips (0.21%).
Daily Candlestick Chart (SEKEUR as at Sep 16, 2020):
Wednesday's trading range has been 4 pips (0.42%), that's slightly below the last trading month's daily average range of 8 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 SEKEUR. Prices continued to consolidate within a tight trading range between 0.0959 and 0.0965 where it has been caught now for the last three trading days.
Despite a weak opening the forex pair managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the Tweezer Bottom.
Prices are trading close to the key technical support level at 0.0958 (S1). The currency found buyers again today around 0.0959 for the third trading day in a row after having found demand at 0.0959 in the prior session and at 0.0959 two days ago. The last time this happened on September 7th, SEKEUR actually lost -0.31% on the following trading day.
While the pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for SEK/EUR. Out of 247 times, SEKEUR closed lower 46.56% 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 49.80% with an average market move of -0.06%.