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The pattern started when the pair started depreciating from 0.8115; currently it is trading at 0.7947. The Stochastic indicator sends a buy signal on 1D horizon suggesting we might see a bullish correction in the near future. The SWFX market sentiment is bullish—54% of all open positions on the pair are open. In addition 71% of pending orders on the pair are to buy. Long traders could focus on daily pivot (PP)/20bar SMA/pattern's resistance at 0.7963/65, Fibonacci (61.8% of move since 5th of September) and Bollinger's band at 0.7983.
Technical indicators on aggregate point at depreciation of the pair on 1H and 4H horizons suggesting that the pair will continue to follow pattern's, downward sloping, trend. Short traders could focus on cluster of support levels at 0.7944/37 (Bollinger's band, daily pivot (S1), pattern's low), daily pivot (S2)/pattern's support at 0.7914 and daily pivot (S3)/pattern's support limit/5th of September low at 0.7891/79.
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