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The pattern started when the pair rebounded from 1.0330 and after testing pattern's support band at 1.0101 and 1.0178 it slowed down at 1.0496 where the pair is currently trading. Technical indicators on aggregate point at appreciation of the pair on the 4H time horizon. Long traders could set the first target at the pattern's resistance band at 1.0535. If this level is breached next target could be at the daily retracement level (Fibonacci) at 1.0556.
Technical indicators on aggregate point at depreciation of the pair on 1W outlook indicating that the pair most likely will rebound from pattern's resistance. The SWFX market sentiment shows that 55% of traders also expect depreciation of the pair in the recent future. Short traders should focus on the recent plunge at 1.0450. If this level is breached, next target could be set at the daily retracement level (Fibonacci) level at 1.0420.
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