The reason for the sideways trading was the influx of buy orders at the 1.8700 and 1.8400 levels.
Daily Candle Chart
On the daily candle chart, it can be observed that, since January 27, volatility of the pair has decreased. In the meantime, a slow decline below the 2.0000 level had occurred.
Meanwhile, during the last week, it was spotted that the currency exchange rate has resumed to respect the weekly simple pivot points. Namely, the rate bounced between the support of the weekly S1 at 1.9267 and the weekly PP at 1.9833.
Market Depth
The market depth data gives guidance, as the buy and sell order clusters shown on the chart and data tables can be used for creating a trading strategy.
It could be observed on Friday, February 7, that sell orders had not changed throughout the week.
Notable amount of orders start near 2.0600 where 733 DUK+ could be sold. Moreover, starting from 2.0600, at each level there are orders to sell at least 200 coins.
In addition, there is a cluster of sell orders at 2.2500 with 700 DUK+ to be sold.
In the meantime, during the week, buy orders came in. Orders to buy 150 coins were set at 1.8700. Meanwhile, from 1.8400 to 1.8100 there are orders to buy 834 DUK+ coins.
Last but not least, from 1.7600 to 1.7400 orders for more than a thousand coins to be bought are set up.
© Dukascopy Bank SA
© Dukascopy Bank SA
© Dukascopy Bank SA
Future outlook
In regards to the future, sideways trading is expected to continue, as bullish pressure has appeared. It is supplied by the existence of the buy orders, which previously were absent.
However, the sideways trading has a large range to do so, as between the support of the 1.8700 level and the resistance of 2.0600 there is a difference of almost twenty cents.
In this range, use the simple weekly pivot points for guidance, as they have proven that they are once again impact the DUK+/EUR exchange rate.