© Dukascopy Bank SA
For the last six weeks, the pair has been depreciating inside the area bounded by two downward sloping gradually converging lines. Now the currency couple is headed towards the upper limit of the formation but to approach this level the pair has to overcome several hindrances, namely a cluster of four-hour resistances at 1.6815/23 and the 200-bar SMA at 1.6828, a climb above which will push the pair to the pattern's boundary, a formidable resistance that is likely to halt the advance.
© Dukascopy Bank SA