USDNOK breaks above 50-day moving average for the first time since December 10, 2019
US Dollar/Norwegian Krone (USDNOK) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDNOK finished the week 1.53% higher at 9.0478 after surging 516 pips (0.57%) today. Today's close at 9.0478 marks the highest recorded closing price since December 12, 2019. Closing above Thursday's high at 9.0258, the FX pair confirmed its breakout through the prior session high after trading up to 321 pips above it intraday.
Daily Candlestick Chart (USDNOK as at Jan 24, 2020):
Friday's trading range has been 838 pips (0.93%), that's far above the last trading month's daily average range of 641 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for USDNOK.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 50-day moving average at 9.0121 for the first time since December 10, 2019. When this moving average was crossed above the last time on December 10, 2019, USDNOK actually lost -0.73% on the following trading day. After spiking up to 9.0579 during the day, the forex pair found resistance at the 100-day moving average at 9.0543.
Crossing above the upper Bollinger Band for the first time since Tuesday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 8.8850 or signal the beginning of a strong momentum breakout leading to even higher prices.
The pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for USD/NOK. Out of 85 times, USDNOK closed lower 54.12% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.41% and AUDUSD closing -0.34% lower. On the flipside the best performers have been USDCHF closing 0.23% higher and USDCAD gaining 0.14%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDPLN surging 0.53% and USDSEK closing 0.43% higher. The worst performers of the day have been GBPJPY tanking -0.6% and AUDJPY closing -0.53% lower. Read more