USDNOK pushes through Thursday's high
US Dollar/Norwegian Krone (USDNOK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDNOK ended the week -2.32% lower at 9.9981 after gaining 580 pips (0.58%) today on low volume. Closing above Thursday's high at 9.9860, the currency confirmed its breakout through the prior session high after trading up to 1145 pips above it intraday.
Daily Candlestick Chart (USDNOK as at May 22, 2020):
Friday's trading range has been 1716 pips (1.73%), that's slightly above the last trading month's daily average range of 1570 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for USDNOK.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the close-by swing low at 9.8789 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for USD/NOK. Out of 596 times, USDNOK closed lower 51.68% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more