© Dukascopy Bank SA
At the moment, the instrument is sitting at the 50-hour SMA at 6.7509 that is meandering close to the lower boundary of the triangle. Considering a moderate bearishness on the SWFX – over 57% of all orders are short – we may expect the pair to dive below the short-term SMA that in fact is the last defence from a downside exit. If this materializes, the currency couple is likely to witness a deep sell-off in the hours to come.
© Dukascopy Bank SA