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The pattern started when the pair bounced from 0.8012 and after testing pattern's resistance level at 0.8153 and 0.8095 it has slowed down at 0.7973 where the pair is currently trading. The Stochastic indicator on the 4H outlook suggests that the pair will rebound from the patterns support band. First target for the long traders could be at 0.7985. If this level is breached, the next milestones could be set at 0.8007 and 0.8045.
Technical indicators on aggregate point at a bearish market development on the 4H, 1D and 1W horizons. The current market sentiment shows that majority of the market participants (60%) anticipate future depreciation of the pair as well. Short traders could focus on the pattern support level around 0.7965, also 61.8% of Fibonacci 4H retracement. If this level is breached, next target could be at 16th of May low at 0.7951.
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