XMRUSD closes higher for the 2nd day in a row
XMR/US Dollar Index (XMRUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, XMRUSD ended Saturday at 128.31 surging $7.85 (6.52%). Today's close at 128.31 marks the highest recorded closing price since October 27th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 125.61, the cryptocurrency confirmed its breakout through the previous session high after trading up to $2.85 above it intraday.
Daily Candlestick Chart (XMRUSD as at Nov 21, 2020):
Saturday's trading range has been $9.00 (7.47%), that's above the last trading month's daily average range of $7.33. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for XMRUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 128.09 (now S1), which is likely to act as support going forward. The last time this happened on November 16th, XMRUSD gained 6.24% on the following trading day.
Crossing above the upper Bollinger Band for the first time since October 12th, 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 117.22 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.
With prices trading close to this year's high at 139.33, upside momentum could accelerate should XMR be able to break out to new highs for the year.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for XMR/USD. Out of 139 times, XMRUSD closed lower 58.99% 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 56.83% with an average market move of -2.29%.