SEKEUR finds support at 100-day moving average
Swedish Krona/Euro (SEKEUR) Technical Analysis Report for Oct 15, 2020 | by Techniquant Editorial Team
SEKEUR ended Thursday at 0.0962 losing 3 pips (-0.31%). Closing below Wednesday's low at 0.0963, the currency confirmed its breakout through the prior session low after trading up to 3 pips below it intraday.
Daily Candlestick Chart (SEKEUR as at Oct 15, 2020):
Thursday's trading range has been 6 pips (0.62%), that's slightly below the last trading month's daily average range of 7 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SEKEUR.
In spite of a strong opening the pair 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 Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on October 6th, SEKEUR gained 0.63% on the following trading day.
After trading as low as 0.0960 during the day, the forex pair found support at the 100-day moving average at 0.0962. The market closed back below the 50-day moving average at 0.0963.
SEK/EUR shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the nearby swing high at 0.0968 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for SEK/EUR. Out of 48 times, SEKEUR closed lower 52.08% 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 54.17% with an average market move of -0.02%.