© Dukascopy Bank SA
The pattern started when the pair rebounded from 0.8016 and after testing patterns lower band at around 0.7845 on 22nd of June at 08:00 GMT and on 25th of June at 14:00 GMT it has slowed down at 0.79 where the pair is currently trading. The patterns resistance level is at 0.7918. The Stochastic indicator on 1D time horizon and technical indicators on aggregate on 4H and 1D outlooks suggest a possible bullish market outbreak. Long traders could focus on the pattern resistance level at 0.7918. If this level is breached, next targets could be at the daily resistance at 0.7927 which was tested few hours ago.
The RSI on the 1H outlook and the current market sentiment, which remains with bears in majority, points at the possible further drop of the pair. Short traders could focus on the daily support level and at SMA200 at around 0.7905. If the pair breaches this level, next possible targets could be at 0.7879 and the pattern lower band at 0.7845.
© Dukascopy Bank SA