This event resulted in a sharp surge, which by the middle of Monday, January 4, had reached the 7.0000 mark. Namely, a 182.21% surge occurred.
However, after touching the high level, the rate declined to look for support. Such support could be provided by a minor cluster of buy orders near 5.1000.
Daily Candle Chart
On the daily candle chart, there are no previous high levels that could be used as a guide for support and resistance zones. In addition, the pivot points and simple moving averages are useless in such a sudden fundamental move.
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 January 4.
There is only one noteworthy buy order cluster near the rate. Namely, more than 200 coins could be bought near the 5.1000 level.
Meanwhile, sell orders are present, as there are from 100 to 200 orders to sell at 6.0000, 6.5000, 7.0000 and 8.0000.
Above the round levels, where sell orders are set up, there is a much larger cluster of sell orders. There are orders to sell more than 2,000.00 coins in the zone from 9.9800 to 10.0000.
© Dukascopy Bank SA
© Dukascopy Bank SA
Future outlook
In the near term future, the rate was expected to consolidate or decline down to the 5.1000 level. That is forecast due to the lack of buy orders close to the exchange rate. In the meantime, there are sell orders set up near round exchange rate levels, where most likely holders intend to take profits.
However, for the rate to surge, there should appear an inflow of buyers, which could pay and cover all of the ask orders, which are spread out from 6.0000 to 10.0000.