KMDUSD breaks above 50-day moving average for the first time since September 1st
Komodo/US Dollar Index (KMDUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KMDUSD ended Saturday at 0.51 surging $0.03 (6.25%). Today's close at 0.51 marks the highest recorded closing price since October 24th.
Daily Candlestick Chart (KMDUSD as at Nov 21, 2020):
Saturday's trading range has been $0.05 (10.42%), that's far above the last trading month's daily average range of $0.03. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KMDUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 50-day moving average at 0.49 for the first time since September 1st.
Crossing above the upper Bollinger Band for the first time since August 22nd, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 0.46 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on August 22nd, KMDUSD actually lost -7.22% on the following trading day.
While KMD is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for KMD/USD. Out of 69 times, KMDUSD closed lower 52.17% of the time on the next trading day after the market condition occurred.