KMDUSD closes within previous day's range after lackluster session
Komodo/US Dollar Index (KMDUSD) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
KMDUSD finished Saturday at 0.66 gaining $0.01 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KMDUSD as at Aug 01, 2020):
Saturday's trading range has been $0.02 (3.08%), that's below the last trading month's daily average range of $0.04. 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 KMDUSD. Prices continued to consolidate within a tight trading range between 0.61 and 0.68 where it has been caught now for the whole last trading week.
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. Despite a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
After trading down to 0.65 earlier during the day, KMD/USD bounced off the key technical support level at 0.65 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 27th, KMDUSD gained 4.84% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for KMD/USD. Out of 102 times, KMDUSD closed lower 49.02% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 52.94% with an average market move of -0.29%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more