However, after reaching this level a new retracement back down started. Clues in regards to where the decline would end could be found in the information about the set up pending trade orders and previous historical high levels.
Daily Candle Chart
On the daily candle chart, Dukascopy Analytics have marked the previous historical high levels of the rate. Namely, the zone above 2.0000, which was tested in October and January. In theory, this zone could provide support.
Market Depth
Market Depth reveals, where traders have set up buy and sell orders. The up to date data is published at dukascoin.com. Below, one can observe the market orders on December 21.
There are only minor clusters of sell and buy orders. In the previous environment, we would mark on the chart only clusters of orders that would have at least 500 coins sold or bought. In the current environment, the marked levels in green or red on the chart are the ones that have at them or near them orders to buy or sell around 200 coins.
Minor amounts of sell orders are located at 2.2000 and 2.2700. Meanwhile, more than 500 coins could be sold at 2.5000.
In the meantime, minor concentrations of buy orders are located at 1.9500, 1.8200 and 1.7000.
© Dukascopy Bank SA
© Dukascopy Bank SA
Future outlook
There are many possible short term scenarios for the rate. They are a combination of where the rate's retracement would find support and how the following surge would test the sell order clusters.
The retracement could end at the previous high level above the 2.0000 mark or at the minor buy order clusters at 1.9500, 1.8200 and 1.7000.
Afterwards, a following surge should test the 2.2000 and 2.2700 levels, where sell orders were set up. If these levels fail to keep the pair down, the 2.5000 could be reached.