© Dukascopy Bank SA
The pattern started on 23rd of November, 2011, when pair started appreciating from 0.9664; at the moment pair is trading slightly above 200 day SMA at 1.0356. The gap between pattern's support and resistance narrows 124 pips in 100 bar period. Technical indicators on aggregate point at appreciation of the pair on 1W time horizon. The SWFX market sentiment shows that currently 52% of traders hold long positions on the pair and 52% of all posted orders on the pair are buy orders. Long traders could focus on. Fibonacci retracement (23.6% of move since 1st of June) at 1.0370, weekly pivot (R1) at 1.0459 and pattern's resistance limit at 1.0485.
Technical indicators on aggregate send a sell signal on 1D time horizon suggesting that the pair should continue to depreciate. Short traders could set their targets at 200 day SMA at 1.0341, weekly pivot (PP) at 1.030, Fibonacci retracement (38.2%)/weekly pivot (S1) at 1.0219 and weekly pivot (S2) at 1.0072.
Main fundamental events who might have impact on pairs development would be US trade balance announcement on 11th of September and release of RBA Reserve Bank Board's meeting minutes on 17th of September.
© Dukascopy Bank SA