By the middle of Monday's, December 2, London trading hours, the decline of the rate had touched the 1.0400 level. The price had declined by almost 23%. The fall was attributed to the crypto consolidating after previous gains.
The decline was expected to continue until the rate would reach the 1.0100 level. At that level, the rate would meet with a strong support cluster.
Daily Candle Chart
On the daily candle chart, the pair has the close by support of the 55-day simple moving average near 1.0000 and the first support level of the simple weekly pivot points at 0.9800. If the rate reaches the support of the SMA, it would reduce its overbought pressure.
Meanwhile, the rate has two additional levels, where technical indicators are providing support. At 0.8800 the 100-day SMA and the weekly S2 pivot point are located at. In the meantime, the 200-day SMA is strengthening the support of the monthly S1 pivot point near 0.8500.
Market Depth
By looking at the market depth data, clusters of resistance and support can be observed.
The biggest cluster of orders is located at the 1.0100 level, where buy orders have been set. In theory, it is highly unlikely that the exchange rate could decline below this level.
In the meantime, there were four other levels, where buy orders were located at. At the 0.9000, 0.8000 and the 0.7500, 0.7000 levels market participants had set up buy orders.
In regards to sell orders, traders had set up notable ask orders at 1.3900. In addition, immediately above it, at 1.4000, a strong cluster of orders was located at.
© Dukascopy Bank SA
© Dukascopy Bank SA
© Dukascopy Bank SA
Future outlook
In regards to the future, the rate is bound to test the supporting combination of the buy orders at 1.0100, the 55-day simple moving average at 1.0000 and the weekly S1 simple pivot point at 0.9800.
If these levels fail to hold the rate up, it would continue its decline down to the cluster of technical levels and buy orders from 0.9000 to 0.8433.
On the other hand, if the close by support holds, the rate might surge up to the 1.4000 level. However, it would not occur soon, as the rate would meet with the resistance of various pivot points. The pivot points would slow down the surge until the 55-day SMA pushes the pair through them.