STRATUSD finds buyers at key support level
Stratis/US Dollar Index (STRATUSD) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
STRATUSD ended Saturday at 0.56 gaining $0.01 (1.82%) on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (STRATUSD as at Aug 01, 2020):
Saturday's trading range has been $0.04 (7.27%), that's below the last trading month's daily average range of $0.06. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for STRATUSD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 0.54 earlier during the day, STRAT/USD bounced off the key technical support level at 0.55 (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 Wednesday, STRATUSD lost 0.00% on the following trading day.
Though Strat is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 0.59 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 0.53 where further sell stops might get triggered.
Among the four 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. While it is usually interpreted as bullish, it has actually shown to be bearish for STRAT/USD. Out of 66 times, STRATUSD closed lower 56.06% 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 10 trading days, showing a win rate of 59.09% with an average market move of -1.00%.
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