On Monday, the exchange rate had already touched the high level of 1.2500, where it encountered the technical resistance of the R1 of the simple weekly pivot points.
In regards to the near term future, the rate had a couple of possible scenarios. Although, a decline was not among them.
Daily Candle Chart
On the daily candle chart, an ascending channel pattern has been added. It captures the rate's surge, which has been occurring since late October.
Recently, the rate met with the upper trend line of the pattern that caused the sideways trading, which occurred from Thursday until Monday.
Market Depth
By looking at the market depth data, clusters of resistance and support can be observed.
In regards to buy orders, from 1.1000 down to 1.0000 there are seven levels, where buy orders are concentrated at. Among them the largest is the 1.0100 level.
© Dukascopy Bank SA
© Dukascopy Bank SA
In the meantime, the rate faces two clusters of sell orders. The most close by is the 1.3000 level, which is nearly fifteen cents away. Meanwhile, a minor concentration of orders is near the 1.4000 mark.
Future outlook
If the rate continues its surge in accordance with the pattern, it could fluctuate in a couple of ways.
It can surge in a lower angle than previously until it reaches the 1.3000 mark.
Secondly, sideways trading until November 20 is possible, as the pattern's lower trend line would be reached at that time. It could provide additional support needed for a push higher.
Last but not least, the pair could look for support in the buy order cluster that start at the 1.1000 level.
Meanwhile, a decline is highly unlikely due to the massive amount of buy orders below the exchange rate.