This week, the rate was expected to reach support levels near 0.6300.
Daily Candle Chart
On the daily candle chart, the rate has made a decline, following a bounce off from the upper trend line of a channel down pattern. With the bounce off from the line the pattern has been fully confirmed, as the pair has touched the upper and lower trend lines of the pattern twice.
Meanwhile, the exchange rate has left the daily simple moving averages above it, which signals that the rate was oversold. Namely, the 55, 100 and 200-day SMAs are located from 0.7700 to 0.8500.
Market Depth
By looking at the market depth data, it can be observed that there are three clusters of buy orders. Namely, there are two minor and one large cluster of orders.
At 0.6000 and the 0.6400 levels there were minor bid order cluster. Meanwhile, most buy orders were at the 0.6300 level, from which the rate rebounded in September.
© Dukascopy Bank SA
© Dukascopy Bank SA
In the meantime, there was a small cluster of sell orders far above the price, at 0.7600.
Meanwhile, the biggest concentration of sell orders was at the 0.8000 mark.
Future outlook
In the near term future, the exchange rate was expected to reach the support levels from 0.6300 to 0.6400. What happens in that zone, will signal, which of the future scenarios could occur.
If the support levels hold and force the pair into a surge, it could reach for the resistance of the weekly pivot point at 0.7367 or the cluster of resistance levels near 0.7600.
On the other hand, passing of the support cluster could result in a decline down first to the 0.6000 and 0.5767 levels and afterwards the lower trend line of the channel down pattern.