This resulted in a surge, which was set to test weekly pivot points and the 55-day simple moving average from 0.7230 to 0.7500.
Daily Candle Chart
On the daily candle chart, the rate bounced off the mentioned pivot point and was surging in the borders of the large scale channel down pattern.
Meanwhile, the exchange rate still had the daily simple moving averages above it, which signal that the rate was oversold. The 55, 100 and 200-day SMAs are located from 0.7500 to 0.8300.
Market Depth
By looking at the market depth data, it can be observed that there are only a couple of levels where sell or buy orders are concentrated at.
There are two price levels, where sell orders are located at. On Monday, a large concentration of ask orders were at the 0.8000 mark. In addition, there is an increase of sell orders at 0.8700.
© Dukascopy Bank SA
© Dukascopy Bank SA
In the meantime, a massive concentration of buy orders were at the 0.6500 level.
Future outlook
During this week, it is expected that the exchange rate would reach the resistance of the 55-day simple moving average near the 0.7500 level.
If the SMA provides resistance, the rate could either trade sideways or look for support in one of the weekly pivot points at 0.7233 or 0.6867.
On the other hand, in the case of a break of the 55-day SMA, DUK+/EUR would first test the monthly pivot point at 0.7633 and afterwards a combination of three resistance levels. Namely, the 200-day SMA, weekly R3 pivot point and the 0.8000 cluster of sell orders would provide resistance.