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The pattern started when the pair bounced from 1.2045 and after testing pattern's resistance twice it slowed down slightly above SMA200 at 1.2333 where the pair is currently trading. Technical indicators on aggregate point at appreciation of the pair on 1H, 4H and 1D time horizons indicating that it is highly likely that the pair will continue to follow pattern's uptrend. Long traders could set the first target at the daily pivot (R1) at 1.2380. If this level is breached, next targets could be at the daily pivots at 1.2433 (R2), 1.2492 (R3) and pattern's resistance band at 1.2517.
The SWFX market sentiment index is currently slightly in favor for the short traders, but it is highly likely that such situation will not last long and effect of US data which came out on 12:30 GMT should evaporate fast. However, the RSI on 1D time horizon shows that we might see some downward facing price correction. Short traders should focus on the SMA200 at 1.2311. If this level is breached, next targets could be at the pattern's support at 1.2300 and daily pivot (S1) at 1.2267.
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