Buy orders showed up last week and caused a test of the levels above the 2.0000 mark. Moreover, note that the rate was highly volatile, as it bounced between 2.0500 and 1.6500.
Daily Candle Chart
During the last month, the 55 and 100-day simple moving averages impacted the rate in a quite peculiar way. Namely, they managed to provide both support and resistance.
However, they do not manage to cause reversals. The rate pauses at the SMAs for a couple of trading sessions and afterwards resumes its move.
At the start of this week, the rate was located above the simple moving averages. Namely, the 55-day SMA was located at 1.6210, the 100-day SMA at 1.5710 and the 200-day SMA at 1.5150. The SMAs could provide short term support to the currency exchange rate.
Market Depth
Market Depth reveals, where traders have set up buy and sell orders. The up to date data is published at dukascoin.com. Below, one can observe the market orders on November 2.
In general, traders have set up sell orders, as they spotted the sudden surges occurring. Some want to profit from the spikes by selling at 1.8000 and 1.9900. There are orders to sell more than 2,000 coins at 1.9900 and more than 1,500 at 1.8000.
In addition, close by sell orders were concentrated at 1.7200 and 1.7500.
Meanwhile, close by notable buy orders were located at 1.5100. Next notable buy order cluster was at the 1.4500 mark.
© Dukascopy Bank SA
© Dukascopy Bank SA
Future outlook
In regards to the near term future, the rate is expected to trade sideways between 1.8000 and the 1.6500 level.
Namely, in the case of buying starting, the price would start to move up, but it would be slowed down by the minor sell orders at 1.7200 and 1.7500. Afterwards, a surge is most likely going to stop at 1.8000.
Meanwhile, take into account that, if the rate declines, due to a sudden sell off, the SMAs are most likely going to provide only short term support. They are not going to reverse a decline. A reversal could occur only at the clusters of buy orders.