© Dukascopy Bank SA
The pattern started when the pair bounced from pattern's support at 0.9642; currently it is trading at 0.9522. 80% of pending orders in 200 pips range from current market price are to go long indicating existence of strong support in lower levels. Long traders could focus on Fibonacci retracement (23.6% of 27th of September-5th of October move)/daily pivot (PP) at 0.9531, 20 bar SMA at 0.9550, weekly pivot (R1) at 0.9563 and Fibonacci retracement (38.2%)/pattern's resistance/Bollinger band at 0.9582/90.
Technical indicators on aggregate point at depreciation of the pair on 4H and 1D horizons suggesting that pair will continue to follow pattern's, downward slopping, trend. The SWFX market sentiment is mildly bearish as 56% of traders hold short positions expecting its further depreciation. Short traders could focus on Bollinger band at 0.9511, daily pivot(S1) at 0.9481 and weekly pivot (S2)/ recent (pattern's) low (5th of October) at 0.9449/45.
© Dukascopy Bank SA