© Dukascopy Bank SA
The pattern started when pair bounced from 0.808 and after testing resistance levels at 0.823 and 0.764 it has slowed down at 0.754 where the pair is currently trading. Aggregate indicators do not suggest any clear emerging trends in any of time horizons and the current market sentiment is almost equally divided between bears and bulls, but the Stochastic and the RSI indicator point at possible bull market outbreak in 1W horizon. Long traders could focus on the resistance level at 0.757. If this level will be breached, next target could be at pattern resistance test level at 0.764.
Short traders, expecting positive fundamental news from the US, could focus on the support level at 0.748. If the pair breaches this level, next possible target could be at the lowest level since mid December at 0.745.
© Dukascopy Bank SA