EOSUSD runs into sellers again around 2.75
EOS/US Dollar Index (EOSUSD) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
EOSUSD ended Monday at 2.63 tanking $0.08 (-2.95%). This is the biggest single-day loss in over a month. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EOSUSD as at Oct 26, 2020):
Monday's trading range has been $0.15 (5.54%), that's far above the last trading month's daily average range of $0.09. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EOSUSD. Prices continued to consolidate within a tight trading range between 2.60 and 2.75 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Despite a strong opening the cryptocurrency closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on September 2nd, EOSUSD lost -15.76% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 2.60 earlier during the day, the market bounced off the key technical support level at 2.61 (S1). The failure to close below the support might increase that levels significance as support going forward. EOS/USD closed back below the 50-day moving average at 2.63. After having been unable to move above 2.74 in the previous session, EOS ran into sellers again around the same price level today, missing to move higher than 2.75.
EOSUSD shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling could speed up should prices move below the nearby swing low at 2.60 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EOS/USD. Out of 30 times, EOSUSD closed higher 60.00% 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 two trading days, showing a win rate of 56.67% with an average market move of 0.32%.