EOSUSD enters Death Cross for the first time since August 21st
EOS/US Dollar Index (EOSUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, EOSUSD finished Saturday at 2.53 losing $0.01 (-0.39%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EOSUSD as at Oct 17, 2020):
Saturday's trading range has been $0.04 (1.57%), that's below the last trading month's daily average range of $0.10. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EOSUSD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After having been unable to move lower than 2.50 in the prior session, EOS found buyers again around the same price level today at 2.51. The last time this happened on Thursday, EOSUSD actually lost -2.31% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term. With its 50-day moving average crossing below its 200-day moving average, the market has entered a so-called "Death Cross" for the first time since August 21st. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon.
Selling could accelerate should prices move below the nearby swing low at 2.50 where further sell stops might get triggered. Further selling could move prices lower should the market test September's close-by low at 2.39.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EOS/USD. Out of 4 times, EOSUSD closed higher 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 75.00% with an average market move of 11.97%.
With four out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more