XVGUSD closes higher for the 2nd day in a row
Verge/US Dollar Index (XVGUSD) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, XVGUSD finished Sunday at 0.00438 gaining $0.00006 (1.39%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (XVGUSD as at Oct 18, 2020):
Sunday's trading range has been $0.00017 (3.94%), that's below the last trading month's daily average range of $0.00027. 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 0.00419 and 0.00449 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on Wednesday, XVGUSD actually gained 0.67% on the following trading day.
Prices are trading close to the key technical resistance level at 0.00455 (R1).
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 0.00469 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 0.00419 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for XVG/USD. Out of 141 times, XVGUSD closed lower 58.87% 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 57.45% with an average market move of 0.86%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more