The surge was followed by a consolidating decline and sideways trading, which ended on Friday January 17, as a new high level was touched.
Daily Candle Chart
On the daily candle chart, there are two factors to mention. First of all, the rate has been piercing the weekly and monthly pivot points. This indicates that in the current environment they are not reliable indicators.
In the meantime, the rate is still overbought, as indicated by the far below daily simple moving averages. The closest by SMA was the 55-day simple moving average, which on Monday, January 20, was located at 1.4090.
Market Depth
The market depth data gives more guidance than the technical indicators, as the buy and sell order clusters shown on the chart and data tables can be used for creating a trading strategy.
The rate has support at the 1.7600 level. Around that level from 1.7700 to 1.7400 orders to buy 785 DUK+ coins are set.
Meanwhile, sell orders are more dispersed and far more numerous. Notable sell orders start from 2.0400, where 205 DUK+ are expected to get sold. Above this level, there are no price levels, where there would not be at least 200 coins set to get sold.
In addition, there is an increase of sell orders just below the 2.0900 mark and a large cluster of sell orders at 2.2400.
In general, it appears that the traders, which bought the DUK+/EUR rate during the recent surge, have set close by take profit sell orders. In the meantime, some traders intend to buy a dip at 1.7600.
© Dukascopy Bank SA
© Dukascopy Bank SA
© Dukascopy Bank SA
Future outlook
In general, it is expected that the rate could continue to consolidate by trading sideways or slightly surge. It is unlikely that major gains would occur unless the sell orders get cancelled.
In the meantime, as the pair trades sideways, the support of the daily simple moving averages could catch up. In that case the overbought pressure would be removed.