© Dukascopy Bank SA
The single currency has just neared the pattern's resistance, which is located at 1.5966. At the moment the pair is testing this important supply zone. In case of success and confirmation of the pattern, the Euro is likely to advance up to the monthly pivot point at 1.6087 in a short period of time.
On the other hand,, the opposite scenario is suggested by technical indicators, which give aggregate neutral and bearish signals on four-hour and daily charts, respectively, meaning that the cross is likely to bounce back down to weekly R1 at 1.5935. Meanwhile, market sentiment is completely neutral, as both bulls and bears are holding 50% of opened positions.
© Dukascopy Bank SA