XMRUSD pushes through key technical resistance level
XMR/US Dollar Index (XMRUSD) Technical Analysis Report for Jul 04, 2020 | by Techniquant Editorial Team
XMRUSD finished Saturday at 64.38 gaining $1.46 (2.32%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XMRUSD as at Jul 04, 2020):
Saturday's trading range has been $2.13 (3.39%), that's slightly below the last trading month's daily average range of $2.15. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XMRUSD.
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. After moving lower in the prior session, the cryptocurrency managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 62.96 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 65.40 (R1). The market found buyers again today around 62.74 for the third trading day in a row after having found demand at 62.65 in the prior session and at 62.64 two days ago. The last time this happened on May 19th, XMRUSD actually lost -3.08% on the following trading day.
While XMR/USD is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 66.64 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 62.64 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for XMR/USD. Out of 449 times, XMRUSD closed lower 57.02% 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 three trading days, showing a win rate of 57.91% with an average market move of -1.80%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are LTCUSD gaining 2.31% and BCHUSD closing 2.07% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been VETBTC surging 21.24% and LTCCNY closing 4.51% higher. The worst performers of the day have been DOGEUSD tanking -3.01% and ICXBTC closing -1.88% lower. Read more