In general, the rate was expected to fluctuate just below this level, as market depth data revealed that there is a large amount of sell orders above the current price level.
Daily Candle Chart
On the daily candle chart, the currency exchange rate is overbought, as the simple moving averages have been left far behind it. On Tuesday, January 28, the most close by SMA was the 55-day SMA at 1.5320.
Market Depth
The market depth data gives guidance, as the buy and sell order clusters shown on the chart and data tables can be used for creating a trading strategy.
The most close by concentration of buy orders was located from 1.9100 to 1.8800. In that range orders to buy 532 DUK+ were set.
In the meantime, orders to buy 495 coins were set at 1.7500.
Meanwhile, sell orders are more dispersed and far more numerous. Notable sell orders start from 2.0500, where 265 DUK+ are expected to get sold. Above this level, there are no price levels, where there would not be at least 200 coins set to get sold.
In addition, there is a large cluster of sell orders at 2.2400.
In general, the situation had not changed since last week.
© Dukascopy Bank SA
© Dukascopy Bank SA
© Dukascopy Bank SA
Future outlook
The previous week's forecast remains unchanged.
It is expected that the rate could continue to consolidate by trading sideways or slightly surge. It is unlikely that major gains would occur unless the sell orders get cancelled.
In the meantime, as the pair trades sideways, the support of the daily simple moving averages could catch up. In that case the overbought pressure would be removed.