XVGUSD stuck within tight trading range
Verge/US Dollar Index (XVGUSD) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
XVGUSD finished Saturday at 0.00602 flat on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XVGUSD as at Aug 01, 2020):
Saturday's trading range has been $0.00047 (7.81%), that's slightly below the last trading month's daily average range of $0.00057. 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 XVGUSD. Prices continued to consolidate within a tight trading range between 0.00579 and 0.00656 where it has been caught now for the last three trading days.
Four candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Rickshaw-Man showed up on July 25th, XVGUSD lost -6.57% on the following trading day.
Prices are trading close to the key technical support level at 0.00566 (S1).
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the nearby swing high at 0.00656 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 0.00547 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for XVG/USD. Out of 37 times, XVGUSD closed higher 56.76% 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 two trading days, showing a win rate of 54.05% with an average market move of 3.07%.
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