SEKEUR unable to break through key resistance level
Swedish Krona/Euro (SEKEUR) Technical Analysis Report for Oct 13, 2020 | by Techniquant Editorial Team
SEKEUR finished Tuesday at 0.0963 flat. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SEKEUR as at Oct 13, 2020):
Tuesday's trading range has been 8 pips (0.83%), that's above the last trading month's daily average range of 7 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SEKEUR.
Five candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
Unable to break through the key technical resistance level at 0.0967 (R1), SEK/EUR closed below it after spiking up to 0.0968 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 0.0960 in the previous session, the forex pair found buyers again around the same price level today at 0.0960. The last time this happened on October 7th, SEKEUR gained 0.21% on the following trading day.
The pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further buying could move prices higher should the market test September's close-by high at 0.0972.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Long-Legged Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for SEK/EUR. Out of 86 times, SEKEUR closed lower 46.51% 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 59.30% with an average market move of -0.23%.