USDSEK breaks below Wednesday's low
US Dollar/Swedish Krona (USDSEK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, USDSEK ended Thursday at 9.9614 losing 1398 pips (-1.38%). Closing below Wednesday's low at 10.0366, the market confirmed its breakout through the prior session low after trading up to 1416 pips below it intraday.
Daily Candlestick Chart (USDSEK as at Mar 26, 2020):
Thursday's trading range has been 2662 pips (2.64%), that's slightly above the last trading month's daily average range of 2237 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for USDSEK.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, USDSEK lost -0.35% on the following trading day.
Prices are trading close to the key technical support level at 9.8351 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for USD/SEK. Out of 32 times, USDSEK closed higher 71.88% 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 10 trading days, showing a win rate of 53.13% with an average market move of 0.52%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more