Meanwhile, it could be spotted that the 55-day simple moving average was catching up to the currency pair. This indicated that the pair's overbought pressure was decreasing.
Daily Candle Chart
On the daily candle chart, the support of the 55-day simple moving average was approaching the 1.8000 level, indicating that the rate soon would no longer be overbought.
In addition, take into account that in December, the 55-day SMA was pushing the rate up each time as it approached the rate closer than ten pips.
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.
It could be observed on Monday, February 17, that still above the 2.0500 mark at each price level there were orders to sell at least 200 Dukascoin.
Buy orders have decreased in number. Mentioning worth buy orders were located at 1.8200, where 148 coins could be bought, and 1.7400, where 115 coins were set to be bought.
In the meantime, a large cluster of buy orders was located far below the current price level. At the 1.5100 level there were orders to buy 512 coins.
© Dukascopy Bank SA
© Dukascopy Bank SA
© Dukascopy Bank SA
Future outlook
In the future, the rate could continue to trade sideways until the 55-day SMA approaches it. On the other hand, the rate could decline down to the SMA and meet it near the 1.8200 level.
As the SMA is met, in theory, the exchange rate should resume its surge. It is assumed because the SMA pushed the pair higher in December.
However, if the 55-day SMA fails to push the rate up, the DUK+/EUR pair could look for support in the 1.7400 level.