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The pattern started when the pair started depreciating from 0.9919. Currently the pair is trading at 0.9697. The SWFX market sentiment is bullish as 72% of traders hold long positions on the pair expecting its appreciation. In addition, 52% of all pending orders in the range of 100 pips from current market price are buy orders. Long traders could focus on 17th of September high/ Fibonacci (61.8% of move since 13th of September)/pattern's resistance at 0.9721, Bollinger band at 0.9735, daily pivot (R1) at 0.9750 and 13th of September high/200 bar SMA/daily pivot (R2) at 0.9775/82.
Short traders, who expect that the pair will continue to follow pattern's downward sloping trend, could focus on daily pivot (PP)/Fibonacci (38.2%) at 0.9692/87, Fibonacci (23.6%)/Bollinger band/daily pivot (S1) at 0.9667/59, pattern's low at 0.9633 and pattern's support/daily pivot (S2) at 0.9601.
© Dukascopy Bank SA