USDNOK finds buyers again around 9.2239
US Dollar/Norwegian Krone (USDNOK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
USDNOK finished the week -0.58% lower at 9.2477 after edging lower 27 pips (-0.03%) today. Trading 273 pips higher after the open, USD/NOK was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (USDNOK as at Feb 14, 2020):
Friday's trading range has been 536 pips (0.58%), that's far below the last trading month's daily average range of 787 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for USDNOK. Prices continued to consolidate within a tight trading range between 9.1980 and 9.3152 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, four candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Northern Doji showed up on February 6th, USDNOK actually gained 0.89% on the following trading day.
Prices are trading close to the key technical support level at 9.1944 (S1). After having been unable to move lower than 9.2151 in the prior session, the market found buyers again around the same price level today at 9.2239.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 9.2780 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 9.1980 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Its common bearish interpretation has been confirmed for USD/NOK. Out of 52 times, USDNOK closed lower 59.62% 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 61.54% with an average market move of -0.41%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more