XEMUSD closes higher for the 5th day in a row
XEM/US Dollar Index (XEMUSD) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, XEMUSD ended Saturday at 0.0553 surging $0.0033 (6.35%). Today's close at 0.0553 marks the highest recorded closing price since February 24th. Closing above Friday's high at 0.0534, XEM/USD confirmed its breakout through the prior session high after trading up to $0.0045 above it intraday.
Daily Candlestick Chart (XEMUSD as at Aug 01, 2020):
Saturday's trading range has been $0.0059 (11.35%), that's far above the last trading month's daily average range of $0.0034. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XEMUSD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 18th, XEMUSD actually lost -4.30% on the following trading day.
Buyers managed to take out the key technical resistance level at 0.0531 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since July 18th, 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 0.0498 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for XEM/USD. Out of 77 times, XEMUSD closed lower 67.53% 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 61.04% with an average market move of -1.54%.
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