EOSUSD closes within previous day's range
EOS/US Dollar Index (EOSUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
EOSUSD ended Sunday at 3.06 losing $0.17 (-5.26%) on high volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EOSUSD as at Nov 22, 2020):
Sunday's trading range has been $0.39 (12.07%), that's far above the last trading month's daily average range of $0.16. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EOSUSD.
Prices broke below the key technical support level at 3.22 (now R1), which is likely to act as resistance going forward. The last time this happened on November 3rd, EOSUSD lost -0.84% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 2.60.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EOS/USD. Out of 121 times, EOSUSD closed higher 58.68% of the time on the next trading day after the market condition occurred.