SEKUSD closes lower for the 2nd day in a row
Swedish Krona/US Dollar (SEKUSD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SEKUSD finished the week 2.07% higher at 0.1035 after losing 5 pips (-0.48%) today. Closing below Thursday's low at 0.1038, the FX pair confirmed its breakout through the prior session low after trading up to 7 pips below it intraday.
Daily Candlestick Chart (SEKUSD as at May 22, 2020):
Friday's trading range has been 9 pips (0.87%), that's below the last trading month's daily average range of 12 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SEKUSD.
Prices are trading close to the key technical support level at 0.1030 (S1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 0.1046 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for SEK/USD. Out of 699 times, SEKUSD closed higher 47.35% 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 eight trading days, showing a win rate of 51.36% with an average market move of 0.07%.