SEKUSD finds support at 50-day moving average
Swedish Krona/US Dollar (SEKUSD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SEKUSD finished Wednesday at 0.1137 flat. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SEKUSD as at Sep 16, 2020):
Wednesday's trading range has been 8 pips (0.7%), that's below the last trading month's daily average range of 11 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 SEKUSD.
Four candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
After trading as low as 0.1133 during the day, the market found support at the 50-day moving average at 0.1136. The last time this happened on September 9th, SEKUSD actually lost -0.35% on the following trading day.
While SEK/USD is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 0.1144 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Rickshaw-Man" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for SEK/USD. Out of 47 times, SEKUSD closed lower 46.81% 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 51.06% with an average market move of -0.22%.