24 Aug 2015
EUR/NOK's volatility soars
We see an injection of volatility in the EUR/NOK pair that could present a trade for opportunistic readers.
The rally in today's trading has expanded the 2-standard deviation bands for several consecutive hours beyond the maximum width seen in a week of trading. Moreover, the same 1hr charts show recent close prices printing above the 50-period EMA, a bullish condition that should it persist, would help keep prices above the SAR indicator.
A change of direction in the parabolic SAR after two sessions of upward price movement in the EUR/NOK would imply longs are taking profit. Risks exist as the volatility and the vibrant up thrust in price extend to higher time frames.
The rally in today's trading has expanded the 2-standard deviation bands for several consecutive hours beyond the maximum width seen in a week of trading. Moreover, the same 1hr charts show recent close prices printing above the 50-period EMA, a bullish condition that should it persist, would help keep prices above the SAR indicator.
A change of direction in the parabolic SAR after two sessions of upward price movement in the EUR/NOK would imply longs are taking profit. Risks exist as the volatility and the vibrant up thrust in price extend to higher time frames.