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The pattern started when the pair started depreciating from 0.8337; currently it is trading at 20 bar SMA at 0.8174. Gap between pattern's support and resistance narrows by 55 pips in 100 bar period. Long traders, who expect that pair will bounce from pattern's support, could focus on Bollinger band/daily pivot (PP) at 0.8194/201, pattern's resistance at 0.8234 and 200 bar SMA/daily pivot (R1) at 0.8249/52.
Technical indicators on aggregate point at depreciation of the pair on 1H and 4H horizon. The SWFX market sentiment is bearish as 71% of traders hold short positions on the pair expecting its depreciation. In addition, in 200 pip range from current market price 59% of all pending orders are to sell suggesting an existing strong resistance for the pair in higher levels. Short traders could focus on Bollinger band/pattern's low at 0.8157/50, pattern's support/daily pivot (S1) at 0.8142/35 and daily pivot (S2) at 0.8088.
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