WAVESUSD climbs to highest close since September 2nd
Waves/US Dollar Index (WAVESUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WAVESUSD ended Saturday at 3.19 surging $0.24 (8.14%) on high volume. Today's close at 3.19 marks the highest recorded closing price since September 2nd. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WAVESUSD as at Oct 17, 2020):
Saturday's trading range has been $0.48 (16.27%), that's far above the last trading month's daily average range of $0.21. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WAVESUSD.
Buyers managed to take out the key technical resistance level at 3.14 (now S1), which is likely to act as support going forward. After having been unable to move above 3.33 in the prior session, Waves ran into sellers again around the same price level today, missing to move higher than 3.37. The last time this happened on October 5th, WAVESUSD lost -8.05% 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 although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 2.50.
WAVES/USD shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for WAVES/USD. Out of 16 times, WAVESUSD closed higher 62.50% 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 10 trading days, showing a win rate of 75.00% with an average market move of 29.63%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESBTC surging 7.59% and SCBTC closing 4.17% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more