SEKEUR closes within prior day's range after lackluster session
Swedish Krona/Euro (SEKEUR) Technical Analysis Report for Oct 21, 2020 | by Techniquant Editorial Team
SEKEUR finished Wednesday at 0.0966 losing 1 pip (-0.1%). Trading 2 pips higher after the open, the FX pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on October 6th, SEKEUR actually gained 0.63% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SEKEUR as at Oct 21, 2020):
Wednesday's trading range has been 5 pips (0.52%), that's 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 lower than usual for SEKEUR.
After moving higher in the prior session, the market closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 0.0967 (R1), the currency closed below it after spiking up to 0.0969 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The forex pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further buying might move prices higher should the market test September's nearby high at 0.0972.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for SEK/EUR. Out of 393 times, SEKEUR closed higher 47.84% 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 49.36% with an average market move of 0.09%.