This week, there were still sell orders present near this level. However, their number was a lot smaller, which indicated that more gains are possible.
Daily Candle Chart
On the daily candle chart, the surge can be explained by using the daily simple moving averages. Namely, the rate got squeezed in between the 55 and 100-hour simple moving averages. As a result, the rate traded sideways and began to lose volatility and liquidity, as less and less deals occurred.
Usually and as during this time, this resulted in a sudden sharp move, which is called a break out. It occurs due to either the buy or sell side suddenly overtaking the other one due to the lack of counteroffers. In the current case, there were more buyers than sellers and the price jumped due to the lack of supply.
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 23.
There is a minor cluster of sell orders left at the 1.8800/1.9000 zone. These orders are left over after the selling that occurred on Sunday and Monday.
In the meantime, a large concentration of sell orders started at the 1.9600 mark. Namely, the price range from 1.9600 to 2.0200 was full of ask orders.
Meanwhile, buy orders were almost gone. Notable buy order clusters were located at 1.6000 and 1.5200.
© Dukascopy Bank SA
© Dukascopy Bank SA
Future outlook
In the near term future, the rate is set to consolidate by trading sideways or declining to the most close by support cluster. Namely, the 55 and 100-hour simple moving averages and the buy orders near 1.6000.